As of 1 August, Ukraine's international reserves, according to preliminary data, amounted to $37,231.9 million. In July, they decreased by 1.8%. This was reported by the NBU press service.
It is noted that this dynamics is due to the NBU's foreign exchange interventions to cover the structural deficit 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, the dynamics of international reserves in July 2024 was determined by a number of factors.
First, the NBU's operations in the foreign exchange market of Ukraine
The NBU sold $3,306.8 million in foreign exchange on the foreign exchange market and bought back $1.8 million in reserves, according to its balance sheet. Thus, the NBU's net sale of foreign currency in June amounted to $3,305.0 million.
Second, revenues in favour of the government and payments for servicing and repayment of public debt
The government's foreign currency accounts with the NBU received $2,482.7 million. Of this amount:
- $2,197.0 million from the International Monetary Fund;
- $285.7 million from the placement of foreign currency domestic government bonds.
$185.0 million was paid for servicing and repayment of the state debt in foreign currency, of which:
- $77.0 million - servicing and repayment of the debt to the World Bank;
- $70.5 million - payments on government derivatives;
- $20.1 million - servicing and redemption of foreign currency domestic government bonds;
- $17.4 million - payments to other international creditors.
Third, revaluation of financial instruments (due to changes in market values and exchange rates)
In July, the revaluation of financial instruments increased the value of financial instruments by $342.9 million.
The current volume of international reserves covers 4.8 months of future imports.