Ukraine’s international reserves grew by 6% in 2021 – NBU

Ukraine's international reserves in 2021 grew by 6%, or $1.8 billion, the National Bank of Ukraine has said.

"According to preliminary data, Ukraine's international reserves amounted to $30.941 billion as of January 1, 2022. In 2021, they increased by $1.8 billion or 6%. International reserves have increased as Ukraine received external financing and the National Bank purchased foreign currency in the foreign exchange market," the statement said.

In August 2021, Ukraine received 1.928 billion special drawing rights (SDRs) as part of the total SDR allocation from the IMF. In November, it received SDR 500 million as a second tranche from the IMF under the Stand-By Arrangement. Ukraine also received other related official funding during the year, including around EUR 600 million from the European Commission.

In total, Ukraine received $11.2 billion from external and domestic sources in 2021, which almost offset payments to service and repay public debt in foreign currency ($11.5 billion).

For most of the year, the supply of foreign currency in the market exceeded demand primarily due to favorable global conditions for the main goods of Ukrainian exports. The National Bank of Ukraine acted in accordance with the Strategy of Foreign Exchange Interventions and purchased a surplus of foreign currency to replenish international reserves without hindering the market trend. Last year, the net purchase of foreign currency by the central bank exceeded $2.4 billion.

In December 2021, Ukraine's international reserves rose by $342.5 million or 1.1%. They increased primarily due to foreign exchange earnings in favor of the government.

Ukrainian Prime Minister Denys Shmyhal said in late December that Ukraine in 2021 recorded the highest-ever gross domestic product of almost $200 billion.