Ukraine’s international reserves increased by 3.6% in April – NBU

"As of May 1, 2021, according to preliminary data, Ukraine’s international reserves amounted to USD 28,000.1 million (in the equivalent). In April, international reserves increased by 3.6% due to FX proceeds to the government and revaluation of financial instruments," the report reads.

During this period, international reserves were affected by the following factors.

Firstly, transactions related to managing public debt. The government received USD 1,371.4 million in FX proceeds, including USD 1,250.0 million from sovereign Eurobond placement and USD 121.4 million from domestic government debt securities placement. At the same time, the government spent an equivalent of USD 556.1 million on servicing and repayment of FX public debt. USD 391.5 million went towards servicing and repaying Eurobonds, and USD 78.0 million was spent on servicing sovereign Eurobonds. The rest of the funds went to meet the government’s other FX commitments. 

Secondly, revaluation of financial instruments (due to changes in their market value and exchange rate fluctuations). Last month, the value of these instruments increased by USD 200.0 million (in the equivalent). 

Thirdly, the NBU’s interventions on the interbank foreign exchange market. In April, the interbank FX market was mostly balanced. At the same time, at the beginning of the month, demand for foreign currency somewhat exceeded supply. To smooth out excessive exchange rate fluctuations that weakened the hryvnia, the NBU intervened by selling USD 50.0 million.  

International reserves now cover 4.3 months of future imports, sufficient for Ukraine to meet its commitments, and for the government and the NBU to make their current transactions. 

As reported by Ukrinform, in 2020, Ukraine's international reserves grew by 15%, to USD 29.133 billion (in the equivalent).

As of April 1, 2021, Ukraine’s international reserves were USD 27.035 billion (in the equivalent).

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