Ukraine’s international reserves reach nine-year high – NBU

Ukraine's international reserves increased to $31.6 billion dollars as of September 1, thus reaching a nine-year high, the press service of the National Bank of Ukraine (NBU) has reported.

"As of September 1, 2021, Ukraine's international reserves, according to tentative data, amounted to $31.615 billion," the statement said.

This is a record amount of reserves over the last nine years (a larger amount was recorded in April 2012). In August, the reserves increased by 9.2% due primarily to the receipt of funds in the amount of 1.928 billion special drawing rights (SDRs) as part of the IMF's general allocation. The dynamics of reserves during August were also determined by the National Bank's operations on the interbank foreign exchange market. For most of August, the supply of foreign currency in the interbank foreign exchange market outweighed demand, which allowed the National Bank to buy $368.8 million. At the same time, during August, the regulator sold $20.5 million in order to smooth out excessive fluctuations in the hryvnia exchange rate. In total, in August, the National Bank's net purchase of foreign currency on the foreign exchange market amounted to $348.3 million. The dynamics of reserves in August were also affected by public debt management operations.

Foreign exchange earnings in favor of the government amounted to $8.8 million. At the same time and $188 million was spent on servicing and repaying public debt in foreign currency. Payments by the government and the NBU to the IMF in August amounted to $204.3 million.

As of August 1, 2021, Ukraine's international reserves stood at $28.951 billion.