Ukraine's international reserves declined to USD $52bn, down by USD 5% month-on-month. The main reasons for this were large-scale foreign exchange interventions and public debt repayments. The losses were partially offset by tranches from the IMF and the World Bank.
Ukraine's reserves: the main reasons for the decline
According to the National Bank of Ukraine, the country's international reserves have fallen to $52bn. Over the month, the volume of reserves decreased by 5%. Among the key factors, the NBU cites significant foreign exchange interventions, which amounted to $4.7bn, as well as public debt repayments.
Tranches from the IMF and the World Bank
The losses were partially offset by proceeds of $1.5 billion from IMF and additional support from the World Bank. However, these funds were not able to fully cover the amount of reserves spent. According to the NBU, the situation in the foreign exchange market remains tense, which affects the stability of the financial system.
Impact on the economy
A decrease in reserves could affect the stability of the hryvnia and the overall economic situation. Experts advise to closely monitor further actions of the National Bank and international partners. For more information on macroeconomic trends, please see economy of our website.
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