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NBU: In April, Ukraine's international reserves decreased by 4 %

Based on the results of April, Ukraine's international reserves decreased by 4% as of May 1, according to preliminary data, the reserves amounted to 26,944.9m dollars.

NBU: In April, Ukraine's international reserves decreased by 4 %
Photo: NBU press service

This is reported by the NBU press service.

Based on the results in April, reserves decreased by 4% considering the sale of foreign currency by the National Bank, which was partially compensated by foreign exchange earnings in favor of the government, the regulator explains.

During April, the dynamics of reserves were determined by three factors.

The first factor – the operations of the National Bank in the interbank foreign exchange market.

"According to balance sheet data, last month, the central bank sold 2,244m dollars on the foreign exchange market and bought 43m dollars.

In April, net sales of foreign currency by the National Bank amounted to 2,201m dollars. The need for currency sales interventions arises due to the demand for foreign currency exceeding the supply. First of all, it is due to significant defense needs, import of energy resources, and provision of settlements with payment systems due to the active use of cards abroad against the background of a slow recovery in exports," the report says.

The second factor is public debt management operations.

Internal and external foreign exchange earnings in favor of the Government of Ukraine amounted to 1,887m dollars.

In particular, 629m euros and 93m dollars were received from the World Bank, 300m euros – from the French Government, 236m dollars – from the Government of Canada, and 120m euros – from the EU, the NBU reports.

The total amount of government payments for servicing and repaying public debt in foreign currency amounted to 614m dollars.

"Of this amount, 420m dollars was allocated for servicing and repaying domestic government bonds (bonds of internal government loans) denominated in foreign currency, and 78m dollars - for servicing Eurobonds (bonds of external government loans). In addition, in April, the National Bank paid 84m dollars to the International Monetary Fund," the NBU explained.

The third factor is a revaluation of financial instruments (due to changes in market value and exchange rates). Last month, their value decreased by 1,150.3m.

As of April 1, 2022, according to the preliminary data, Ukraine's international reserves made up 28.1bn dollars, which is 2% more than a month earlier.

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