As of 1 July 2024, Ukraine's international reserves, according to preliminary data, totalled USD 37,894.2 million. In June, they decreased by 2.9%, according to the NBU.
This dynamics was driven by the NBU's foreign exchange interventions to cover the structural shortage of foreign currency in the market and smooth out exchange rate fluctuations, as well as the country's debt payments in foreign currency.
These operations were partially offset by proceeds from international partners and from the placement of foreign currency domestic government bonds (FX domestic government bonds).
Overall, in June 2024, the dynamics of international reserves was determined by a number of factors.
First, the NBU's operations in the foreign exchange market of Ukraine
The NBU sold USD 2,995.5 million in foreign exchange on the foreign exchange market, according to its balance sheet. The NBU sold USD 2,995.5 million in the foreign exchange market and repurchased USD 0.9 million in reserves. Thus, in June, the NBU's net foreign currency sales amounted to USD 2,994.6 million, a decrease of 2.7% compared to May.
Second, revenues to the government and payments for servicing and repaying public debt
The government's foreign currency accounts with the NBU received USD 2,431.7 million. Of this amount:
- USD 2,021.4 million. USD 2,021.4 million from the European Union under the Ukraine Facility;
- USD 407.3 million from the European Union under the Ukraine Facility; and USD 2,021.3 million from the placement of foreign currency domestic government bonds;
- USD 3.0 million from the World Bank. USD 3.0 million - from the World Bank.
The NBU paid USD 444.5 million for servicing and repayment of the public debt in foreign currency. The NBU paid USD 444.5 million for servicing and repaying the public debt in foreign currency, including:
- USD 315.7 million. USD 315.7 million - servicing and repayment of foreign currency domestic government bonds;
- USD 73.6 million. USD 73 million - servicing and repayment of the debt to the World Bank;
- USD 12.6 million - debt service and repayment to the World Bank; and USD 12 million - debt service and repayment to Credit Agricole Corporate and Investment Bank;
- USD 42.6 million - debt service and repayment to Credit Agricole Corporate and Investment Bank; and USD 42.6 million - repayment of debt to other international creditors.
In addition, Ukraine paid USD 247.6 million to the International Monetary Fund.
Thirdly, revaluation of financial instruments (due to changes in market values and exchange rates)
In June, the revaluation of financial instruments increased the value of financial instruments by USD 111.9 million.
The current volume of international reserves covers 4.9 months of future imports.