In January, more than $4.3 billion was transferred to the government’s foreign currency accounts at the National Bank.
At the end of January, Ukraine’s international reserves increased by 5% and reached USD 29,921.8 million on February 1, 2023. The National Bank announced this yesterday.
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It is indicated that the reserves grew due to receipts from international partners, which were paid for the net sale of foreign currency by the regulator to cover the difference between supply and demand in the Ukrainian foreign exchange market.
In sum, in January the dynamics of international reserves was determined by many factors. First, the receipt in favor of the government and payments for the servicing and repayment of the public debt. The government’s currency accounts at the National Bank received $4,327.7 million. Of these: 3,256.1 million – from the European Union; 1,000.0 million from the USA (through the World Bank Trust Fund); 71.6 million – from the placement of foreign currency bonds of the internal state loan (OVGZ).
The Cabinet of Ministers paid $65 million for the servicing and repayment of the state debt in foreign currency. Of this, $59 million is for World Bank debt servicing and repayment, $5 million is for foreign currency government bonds, and the rest is owed to other international creditors.
Second, the National Bank conducted transactions in the foreign exchange market of Ukraine. In January, the NBU sold 3,089.6 million dollars. The United States and bought in reserves – 28.5 million. Thus, net sales of foreign currency last month decreased by about $100 million compared to December – at $3,061.1 million.
“Maintaining the volume of foreign NBU interventions at a level close to last month, on the demand side, is due to the impact of significant budget spending at the end of 2022, and on the supply side, a combination of seasonal factors (a decrease in export earnings at the beginning of the year) and the consequences of a full-scale war on exporters of economic activity,” the statement said.
Third, in January, due to revaluation, the value of financial instruments increased by $225.7 million.
“The current volume of international reserves provides financing for 3.7 months of future imports,” concluded the National Bank.
Recall that in December Ukraine’s reserves exceeded pre-war levels. At that time, such dynamics were associated with stable foreign exchange earnings from exporters, mainly the agro-industrial complex.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.