05 January 2024, Friday, 11:19 267

Ukraine's international reserves up 42%, exceeding USD 40.5 billion in 2023

Editor: Roman Vaniyan

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According to preliminary data, international reserves of Ukraine as of January 1, 2024, amounted to USD 40,507.9 million.

This follows from a statement by the National Bank of Ukraine (NBU), the Ukrainian News agency reports.

In December 2023, they increased by 4.4% compared to November, thanks to foreign exchange receipts from international partners, which exceeded the net sale of foreign currency by the NBU and the country's debt payments in foreign currency.

In general, the dynamics of reserves in December 2023 were determined by a number of factors.

First, receipts for the benefit of the government and payments for the maintenance and repayment of the public debt. A total of USD 5,546.4 million was deposited into the government's foreign currency accounts at the NBU.

From this amount:

- USD 2,465.9 million – through the World Bank trust fund, in particular from Japan, Norway and the United States;

- USD 1,810.9 million – macro-financial assistance from the EU;

- USD 881.6 million – from the International Monetary Fund (IMF);

- USD 332.0 million – from the placement of currency bonds of the domestic state loan (OVDP);

- USD 56.0 million – from other international partners.

- USD 708.2 million was paid for servicing and repayment of the state debt in foreign currency, of which:

- USD 420.9 million – to the International Monetary Fund;

- USD 167.0 million – for domestic government loan bonds;

- USD 62.8 million – to the World Bank;

- USD 32.9 million – Deutsche Bank AG, London;

- USD 24.6 million – to other international creditors.

Secondly, operations of the NBU on the currency market of Ukraine. According to balance sheet data, the NBU sold USD 3,559.1 million on the foreign exchange market and bought USD 6.1 million for reserves.

Therefore, the net sale of currency by the NBU in December amounted to USD 3,553.0 million, having increased by 1.4 times compared to November.

The growth of the NBU's foreign exchange interventions last month is primarily due to the seasonal factor, in particular due to the activation of budget expenditures at the end of the year.

Third, revaluation of financial instruments (as a result of changes in market value and exchange rates). In December, as a result of revaluation, the value of financial instruments increased by 426.7 million.

During 2023, the international reserves of Ukraine increased by 42%

Last year, Ukraine received unprecedented global financial support.

About USD 42.7 billion went to the government's accounts at the NBU.

The largest financial assistance came from the European Union - USD 19.7 billion, through the World Bank trust fund - USD 16.4 billion (in particular, from the United States, Japan, Great Britain, Norway, and other countries), the IMF - USD 4.5 billion and Canada - USD 1.8 billion.

The current volume of international reserves provides financing for 5.4 months of future imports.

As the Ukrainian News agency earlier reported, in 2022, international reserves decreased by 7.9% to USD 28.5 billion.

In 2021, international reserves increased by 6% to USD 30.941 billion.