International reserves to exceed $40B by year-end - NBU

The National Bank of Ukraine projects that Ukraine’s international reserves will exceed $40 billion before the end of 2024.

Deputy Governor of the National Bank of Ukraine Sergiy Nikolaychuk said this in an interview with Ukrinform.

“Since mid-2022, we have managed to significantly increase international reserves from approximately $22 billion to over $40 billion during certain periods. According to our forecast, the reserves will surpass the [$40 billion] mark by the end of the year, taking into account the declared volumes of international assistance,” he said.

He also noted that the structural deficit of private sector currency on the market is an objective characteristic of the foreign exchange market during martial law.

Nikolaychuk clarified that this deficit is covered by the surplus of foreign currency in the public sector through the mechanism of international assistance. The Ministry of Finance receives foreign currency from partners and sells it to the National Bank in exchange for Ukrainian hryvnia, which is then channeled into the economy through government spending.

“International aid receipts are generally stable, and the NBU is spending international reserves sparingly, making efforts to ensure that hryvnia instruments are in demand,” Nikolaychuk said.

As Ukrinform reported earlier, Ukraine's international reserves decreased by 6% in October, reaching $36.6 billion as of November 1, 2024.