Ukraine’s International Reserves Soared

by Olha Povaliaieva
Tuesday, September 6, 2022
Ukraine’s International Reserves Soared

The National Bank of Ukraine reported that in August, reserves increased by almost 14%

On September 1, 2022, the national bank of Ukraine published preliminary data regarding the country’s financial reserves. Ukraine’s international reserves stand at almost $25.5 billion. At the end of July, Ukraine’s foreign reserves amounted to $22.4 billion. This means that reserves increased by 13.6% in August. In Ukraine, this increase was attributed to a significant volume of international aid, combined with moderate foreign currency debt repayments and more minor interventions by the Ukrainian national bank to sell currency.

It is reported that foreign currency receipts to the accounts of the government of Ukraine for the last month amounted to $4.788.000. This amount includes:

  • Income from the United States of America through the World Bank mechanism;
  • Enrolment from the European Union;
  • Contribution from the governments of Canada and Italy;
  • Revenue from the placement of internal government bonds;
  • Credits from other creditors.

Against the backdrop of these revenues, Ukraine paid $221 million to the International Monetary Fund. Total government foreign currency debt service and repayment amounted to almost $172 million.

The current level of international reserves thus provides funding for four months. This is enough to fulfil the obligations of Ukraine and the current operations of the government and the national bank.

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