As explained in the National Bank of Ukraine, international reserves increased due to foreign exchange earnings in favor of the government and NBU interventions, which offset the repayment of external and domestic liabilities.
In more detail, foreign exchange earnings in favor of the government exceeded $ 1 billion in June, including $726,3 million from the placement of domestic government bonds. Instead, total debt service payments and repayments totaled $995,6 million.
In the interbank foreign exchange market, the NBU bought $682,8 million, and on some days smoothed out excessive fluctuations in the hryvnia by selling a total of $99,5 million. The net purchase in June amounted to $583,3 million.
The current volume of international reserves covers 4,3 months of future imports, which is sufficient to meet Ukraine's obligations and current operations of the government and the NBU.
How Ukraine's international reserves have changed
The size of international reserves in Ukraine changed monthly. Depending on the needs of the state in repaying external debts, the reserve decreased or increased. For example:
- in January, Ukraine's international reserves decreased by 1,1%;
- in February, the reduction was 1%;
- in March, reserves decreased by as much as 5% (all due to the repayment of government bonds);
- in April - increased by 3,6%;
- in May - decreased by 0,6%;
- in June increased by 2%.
