Ukraine's international reserves reach 11-year high

Ukraine's international reserves reach 11-year high
International reserves in Ukraine reach an 11-year high / NBU
By Dominic Culverwell in Kyiv June 8, 2023

Ukraine's international reserves have achieved their highest level since August 2011, currently amounting to $37.3bn, Ukraine Business News reported on June 7. 

The National Bank of Ukraine (NBU) attributed the growth of reserves to steady inflows from international partners, surpassing the NBU's net currency sales and the country's foreign debt payments. In May alone, the government received $4.3bn deposited into its accounts at the National Bank.

Among the sources of this amount, $1.6bn came as macro-financial assistance from the European Union, $1.25bn from the US, $1.07bn from the issuance of foreign government bonds and $383.1mn from the World Bank.

Conversely, the government disbursed $842.2mn to service and repay its foreign currency-denominated state debt, including OVDP bonds owed to the World Bank, IMF and other international creditors. Despite the NBU's net foreign currency sales increasing to $1.9bn in May, the receipts from international partners surpassed the NBU's interventions.

Additionally, due to revaluation, the value of financial instruments experienced a decline of $26.8mn during the same period.

International reserves in Ukraine grew to $35.9bn last month and passed pre-war levels in March, increasing to over $32bn.

Predictions for international reserves at the end of 2023 vary according to different experts. IER/GET predicts it will amount to $33bn by the end of the year, whilst Sense Bank sees a decline to $26.3bn. The average estimation comes in at $29.5bn.


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