Bleyzer Foundation: Decline of gold and currency reserves not critical for Ukraine.

By bne IntelliNews August 8, 2013

The decline in Fx/gold reserves in July to USD 22.2bn is not critical for Ukraine, believes, executive director of Bleyzer Foundation Oleh Ustenko. According to the expert, gold and currency reserves contracted due to objective reasons. Mainly, payments on external public debts had an impact on the fall of reserve volumes. At the same time, he stressed that Ukraine has already paid more than half of external public debts.

In addition, the EUR rate had an impact on reduction of gold and currency reserves in the pair euro/dollar, since the reserves are counted just in dollars, the economist said. Moreover, the NBU actions on substitution of foreign currency with gold had an impact on the volume of gold and currency reserves.

The reserves of the central bank in July fell to the lowest level since January 2007. The central bank said that the reduction of its reserves was partially offset by proceeds from the sale of government securities for USD 314mn.

According to various experts, Ukraine’s international reserves, that hardly cover 3-month exports, will fall to USD 20.5bn-20.7bn by the end of the year, due to widening of the foreign trade deficit and repayment of external debts.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Macedonia blocks bank accounts of Kazandol project investors

The bank accounts of Copper Investments (COPIN), the investor in Macedonia’s Kazandol mining project via its subsidiary Sardich MC, have been blocked since April 12 and the company’s employees ... more

Finland gives final nod to construction of Nord Stream II

Finland has issued a second and final permit for the construction of the controversial Nord Stream II pipeline that is to pump gas from Russia directly to Germany via a Baltic Sea route, the Regional ... more

Poroshenko officially nominates Smolii for post of Ukraine central bank governor

Ukrainian President Petro Poroshenko has nominated Yakiv Smolii, the acting head of National Bank of Ukraine (NBU), as a candidate for the post of governor to replace the outgoing governor ... more

Most Read

  1. COLCHIS: The uncertain colour of Armenia’s revolution
    4 days ago
  2. Turkish lira hammered again after Erdogan ‘unchained’ stakes claim to monetary role
    5 days ago
  3. Ukraine, Turkey among the “vulnerable three" most at risk to US tightening - Fitch
    2 days ago
  4. Baku warns new Armenian PM of military operations, Turkey mulls diplomatic ties
    6 days ago
  5. Third time lucky for IKEA's Ukrainian launch?
    5 days ago
  1. Europe pushes back against US sanctions on Russia
    27 days ago
  2. BRICKS & MORTAR: Infrastructure investments create new real estate hubs in Bucharest
    26 days ago
  3. Romanian developers get in the game
    1 month ago
  4. COMMENT: Armenia is surrounded by enemies. It needs Russia for practical survival
    19 days ago
  5. MOSCOW BLOG: Russio delenda est
    23 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss