“Over the past two years, there has been a positive trend of increase in gold and foreign exchange reserves of Ukraine,” said the chairperson of the parliament of Ukraine of the Committee on Finance, Tax and Customs Policy Danylo Getmantsev. He indicates that such reserves are a kind of financial safety cushion, like in any other country.
“Despite the economic challenges that our state faces, the foreign exchange reserves of the National Bank of Ukraine amounted to $31.6 billion as of September 1, 2021. This is 8% ($2.551 billion) more than the previous year,” the parliamentarian said.
Getmantsev also pointed out that two years ago Ukrainian gold and foreign exchange reserves amounted to $22 billion, while during the work of the parliament members of the 9th convocation the reserves grew by 43.6%. Namely, they have grown to $9.6 billion in two years.
Foreign exchange reserves (also called forex reserves or FX reserves) are external highly liquid assets under the control of the state (the NBU and the government of Ukraine). International foreign exchange reserves of the NBU are presented in the form of monetary gold, foreign currency and government securities denominated in these currencies; it may also include account balances with international organizations. The reserves can be used for international settlements and payments, covering the balance of payments deficit, stabilizing the exchange rate of the national currency in international markets, etc.
A distinction must be drawn between gold and foreign exchange reserves and gold reserves of the country. Gold reserves are only a part of the official foreign exchange reserves of the state, represented in the form of monetary gold.
