Ukraine's international reserves reach $37.9B as of July 1

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

“Ukraine had USD 37,894.2 million in international reserves as of 1 July 2024, preliminary data show. In June, international reserves declined by 2.9%,” the report says.

As noted, such dynamics were driven by the NBU’s FX interventions to compensate for the structural deficit of foreign currency and smooth out exchange rate fluctuations, as well as Ukraine’s FX debt repayments. These operations were partially offset by funding from international partners and inflows from the placement of FX domestic government debt securities.

Overall, in June 2024, the dynamics of international reserves was determined by several factors.

First, the NBU's operations in the foreign exchange market of Ukraine. The NBU sold USD 2,995.5 million in the foreign FX the foreign exchange market and bought back USD 0.9 million to reserves. Thus, the NBU's net foreign currency sales in June came to USD 2,994.6 million, down by 2.7% from May.

Second, inflows to the government’s accounts and the servicing and repayment of public debt. A total of USD 2,431.7 million came into the government's FX accounts with the NBU. This amount included USD 2,021.4 million from the European Union under the Ukraine Facility, USD 407.3 million from the issuing of FX domestic government debt securities, and USD 3.0 million from the World Bank.

According to the NBU, a total of USD 444.5 million was spent on servicing and repaying the FX public debt. This included USD 315.7 million to service and redeem FX domestic government debt securities, USD 73.6 million to service and repay debt to the World Bank, and USD 55.2 million to meet the country’s liabilities to other international creditors.

In addition, Ukraine repaid USD 247.6 million to the International Monetary Fund.

Third, the revaluation of financial instruments due to changes in their market value and exchange rate fluctuations. In June, financial instruments increased in value by USD 111.9 million due to revaluation.  

It is noted that international reserves are now covering 4.9 months of future imports.

As reported, Ukraine's international reserves amounted to USD 40.5 billion as of January 1, 2024. In 2023, they grew by 42%.

As of June 1, 2024, Ukraine's international reserves reached USD 39.034 billion, according to preliminary data.