Ukraine’s reserves increased for the first time since the war

According to the August results, Ukraine’s international reserves grew for the first time since the beginning of the Russian invasion. According to National Bank data, during the month the reserves increased by 13.6% and on September 1 reached $25.436 billion.

Growth was driven by large amounts of international aid on the back of modest foreign currency debt repayments and smaller interventions by the NBU to sell foreign currency.

Thus, foreign exchange earnings in August amounted to $4,788.4 million, including:

• $3,030.9 million came from the US (through the World Bank mechanism);

• 1,015.6 million dollars from the European Union;

• $349.3 million from Canada;

• $205.6 million from Italy;

• $99.6 million – from the placement of domestic government bonds (OVGZ);

• $87.4 million from other lenders.

The total amount of payments for the servicing and repayment of the state debt in foreign currency amounted to $171.9 million. Ukraine also paid the IMF $221.1 million.

During the month, the NBU sold $1,641.4 million in the interbank market and bought $311.7 million in reserves. The negative balance of interventions reached $1,329.7 million.

“The volume of net sales of foreign currency by the National Bank in August was slightly higher than in July, but significantly lower in terms of the balance of NBU intervention in April, May and June. UAH 36.57 for 1 US dollar ),” said the NBU.

It should be noted that in July the fall in reserves was reduced five times – by only 2% in a month. As of August 1, they reached $22,385 million.

As you know, at the beginning of 2022, Ukraine’s reserves reached $30,941 million. So, by the end of August, the decline was reduced to $5.5 billion.

The NBU expects gold and foreign exchange reserves to approach pre-war levels no earlier than 2024.