Ukraine’s foreign reserves down to $39.7B in September - National Bank

That’s according to the NBU press service, Ukrinform reports.

"As of October 1, 2023, Ukraine's international reserves, according to preliminary data, amounted to USD 39,708.2 million. In September, they decreased by 1.7% as a result of the NBU's interventions to sell foreign currency to cover the difference between supply and demand on Ukraine’s foreign exchange market and the country’s debt payments in foreign currency, which were largely offset by inflows from  international partners," the report says.

In general, in September 2023, the dynamics of international reserves was determined by a number of factors.

First, government receipts and payments for servicing and covering the public debt. A total of USD 3,328.9 million was deposited in the government's foreign currency accounts at the National Bank.

The government paid $465.3 million for servicing and covering public debt in foreign currency, of which $388.9 million went for servicing and repaying forex bonds, $51.1 million – in debt to the World Bank, and the rest was debt to other international creditors.

In addition, Ukraine paid $882.1 million to the International Monetary Fund.

Secondly, the dynamics of foreign reserves in September were influenced by the transactions of the National Bank on the domestic currency market. In September 2023, according to balance sheet data, the National Bank sold $2,692.1 million on the forex market and repurchased $0.7 million to replenish reserves. The net sale of currency by the NBU last month amounted to $2,691.4 million.

Thirdly, the revaluation of financial instruments (as a result of changes in market value and exchange rates) also affected the dynamics of reserves. In September, as a result of revaluation, the value of financial instruments increased by $12.9 million.

As reported earlier, as of September 1, 2023, Ukraine’s international reserves amounted to $40,387.2 million.