The regulator spent more money to support the Hryvnia in the first days after the transition to a regime of managed flexibility of the exchange rate.
Ukraine’s international reserves in October decreased by 1.9% to $38.973 billion. This trend continues for the third month, the National Bank reported on Tuesday, November 7.
“This dynamics is due to the interventions of the NBU and payments of the country’s debt in foreign currency. At the same time, both factors are largely offset by the income from international partners,” the report said. .
According to the regulator, in October the dynamics of international reserves was determined by a number of factors.
According to the NBU, the increase in interventions is mainly due to a situation that increased demand for foreign currency in the first days of transition from exchange rate fixing to a regime of managed exchange rate flexibility.
Thus, from October 2 to October 6, the net sale of money by the National Bank in the foreign exchange market reached, according to the balance sheet data, to $1,151.7 million; the NBU sold almost half of this volume on the first day of the new exchange rate regime. Subsequently, the NBU’s interventions to sell foreign currency stabilized the level observed at the time of the transition to managed exchange rate flexibility.
The government’s foreign currency accounts with the NBU received $3,313.1 million. From this value:
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$1,590.4 million – macro-financial assistance from the EU;
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$1,150 million – grant from the United States through the World Bank Donor Trust Fund;
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$572.7 million – from the placement of foreign currency domestic government loan bonds (OVDP).
The Government of Ukraine paid $892.5 million for the servicing and repayment of public debt in foreign currency. In addition, Ukraine paid the IMF $80.1 million.
We remind you that in July, Ukraine’s reserves set a historical record of $41.7 billion. After that they started to refuse.
We remind you that last week the NBU reduced the sale of foreign currency in the interbank market to $563 million. That’s close to the year-to-date weekly sales average of $570 million. The downward trend in sales has been going on for two weeks now.
Source: korrespondent
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