Ukraine's international reserves decreased to $39B

This was reported by the press service of the National Bank of Ukraine (NBU), according to Ukrinform.

“In May, international reserves declined by 7.9%. Such dynamics were driven by the NBU’s FX interventions aimed at preserving sustainability of the exchange rate and by Ukraine’s FX debt repayments, which were partially offset by inflows from the placement of FX domestic government debt securities and funding from international partners,” the report says.

Overall, international reserve dynamics in May 2024 were driven by the following factors:

• the NBU’s transactions in the Ukrainian FX market (the regulator sold $3,087.0 million on the FX market and bought $11.1 million - the net FX sales amounted to $3,075.9 million in May, which was an increase compared to April);
• inflows to the government’s accounts and the servicing and repayment of public debt (a total of $143.1 million came into the government's FX accounts with the NBU, $412.3 million was paid for servicing and repaying the public debt in foreign currency, and $240.8 million was paid to the IMF);
• the revaluation of financial instruments (due to changes in their market value and exchange rate fluctuations). Therefore, their value grew by $216.1 million.

"International reserves are now covering 5.1 months of future imports," the NBU added.

As reported by Ukrinform, Ukraine's international reserves decreased by 3.1% in April and stood at $42.4 billion as of May 1, 2024.