Ukraine’s international reserves fell by 7.9% in May
6 June 2024 16:41
As of May 2024, Ukraine’s international reserves totalled USD 39 billion. This is 7.9% less than in April. This was reported by the National Bank of Ukraine, according to [Kommersant]
The decline in reserves was mainly due to the NBU’s foreign exchange interventions to ensure the hryvnia’s exchange rate stability and payments for servicing and repayment of public debt in foreign currency. Overall, the NBU sold USD 3.1 billion on the foreign exchange market in May, while proceeds from the placement of foreign currency domestic government bonds and from international partners partially offset the reserve outflow.
According to the NBU, during the month the government paid USD 412.3 million to service and repay the public debt to creditors, including the EBRD, the EIB, and the World Bank. In addition, Ukraine repaid USD 240.8 million of its obligations to the IMF.
At the same time, the revaluation of financial instruments was a positive factor, which increased reserves by USD 216.1 million.
As of 1 June, the current volume of international reserves covers 5.1 months of future imports.
