Changes in Ukraine’s International Reserves

by Olha Povaliaieva
Friday, October 8, 2021

In July it increased by 2.1%, in September it increased by 9.2%, in October it decreased to 31.6 billion dollars

According to the Nаtional Bank of Ukraine, in September 2021, international reserves decreased by 9.2%, so in early October, their volume amounted to 28.705 billion dollars.

It is well known that the decrease in reserves was provoked by the period of peak payments of financial obligations of Ukraine to other states. The total repayment amount is $ 2.557 billion. It is these operations that became significant for September 2021.

Changes in the market value of financial instruments and exchange rates also affected the dynamics of reserves: in September, their value decreased by $202 million.

The third factor of change was the manipulation of the NBU on the interbank market. For the most part, in the previous month, foreign exchange offers of the interbank foreign exchange market exceeded demand. As a result, the NBU was able to buy back $146.6 million. However, on one day in September, demand exceeded supply, so the regulator sold $7 million in a preventive operation to minimize devaluation fluctuations.

"The current volume of international reserves covers 4 months of future imports, which is sufficient to meet Ukraine's obligations and current operations of the government and the National Bank," the NBU commented.

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