Ukraine’s foreign exchange reserves reach $28.9B as of Mar 1

The relevant statement was made by the National Bank of Ukraine (NBU), an Ukrinform correspondent reports.

In February 2023, Ukraine’s foreign exchange reserves decreased by 3.5% as a result of interventions by the NBU, selling foreign currency to cover the difference between the demand and supply in Ukraine’s foreign exchange market, which were greatly compensated for by foreign currency receipts for the benefit of the Government.

In general, last month the dynamics of foreign exchange reserves was determined by a number of factors.

Firstly, the NBU’s transactions in the foreign exchange market of Ukraine. In February 2023, the NBU sold $2,479.7 million in the foreign exchange market and bought $27.7 million to replenish reserves. Hence, in contrast to January 2023, the net sale of foreign currency by the NBU decreased by $609 million to $2,452.0 million.

Secondly, the NBU accounts of the Government of Ukraine received $2,395.8 million, namely $2,065.4 million from the World Bank (including $1,246.9 billion from the United States via the World Bank’s Trust Fund) and $330.4 million from the placement of foreign currency domestic government bonds.

The Government of Ukraine made public debt service payments worth $570.4 million. In particular, a total of $354.0 million was transferred to service and repay foreign currency domestic government bonds; $154.1 million to service and repay the debt to the World Bank; and the rest – to settle accounts with other international creditors. Additionally, Ukraine transferred $306.3 million to the International Monetary Fund (IMF).

Thirdly, the revaluation of financial instruments due to changes in the market value and exchange rates. In February 2023, their cost decreased by $130.7 million.