World Bank voices concern over considerable drop in Ukraine’s Fx/gold reserves.

By bne IntelliNews October 31, 2013

The World Bank has voiced concern over a considerable drop in the National Bank's gold and foreign currency reserves for the last few months, World Bank Director for Ukraine, Belarus and Moldova Qimiao Fan said. The current reserves will finance imports finance for less than 2.5 months (compared to an acceptable 3 months), he noted.

The National Bank's requirement for the mandatory sale of some foreign currency earnings both by exporters, legal entities-residents and entrepreneurs is considered to be inadequate as it is ineffective for a long-term run, he added. According to the World Bank, a significant current account deficit of the balance of payments and the fiscal deficit affect the hryvnia exchange rate and the gold and foreign currency reserves.

In September, the international reserves of the National Bank of Ukraine (NBU) decreased by 0.06% or USD 12.88mn and amounted to USD 21,639mn, the central bank has announced. In September following factors influenced the changes: attracting the funds by the government at the domestic and foreign markets (USD 882mn), payments of state and secured debts (USD 475mn), holding the interventions at the interbank exchange market by the National bank (-USD 582.5mn). In Jan-Sep, central’s bank’s reserves decreased by 11.84% from USD 24,546.2mn to USD 21,639mn.

Earlier this year, PM Mykola Azarov said that Ukraine will not be spending its foreign reserves on supporting national currency in 2013. 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.

Related Articles

Ukrainian agriculture minister resigns amid uncertanty over land reform

Ukrainian Agrarian Minister Taras Kutovy announced his resignation on May 23 amid stalling efforts to push through a radical land privatisation reform in the former Soviet republic. "The ... more

Ukrainian parliament refuses to endorse preparations for land reform despite IMF demands

Ukraine's parliament, the Verkhovna Rada, has refused to adopt a bill that will enable  drafting a roadmap for the country's controversial land reform. On May 18, only 17 lawmakers ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss