Foreign exchange reserves rose to a maximum since the revolution of Dignity

Foreign exchange reserves (GCR) of Ukraine on 1 September amounted to more than $ 18 billion. Such preliminary data was published by the press service of the National Bank of Ukraine (NBU)

The regulator stress that the last time the reserves exceeded the mark in early 2014.

Compared to the beginning of the year, the reserves increased by 16%. In particular, at the end of August, the reserves increased by 240 million dollars, or 1.3%.

As noted in the NBU, in August, the changes of volume of reserves was affected by the same factors:

  • receipt in favor of the government in the amount of 351,5 million dollars from placing of bonds of internal state loan (government bonds) denominated in foreign currency;
  • currency interventions of the NBU on the interbank market, the results of which net purchase of foreign currency amounted to 234 million dollars;
  • payments of the government and the National Bank in favor of International monetary Fund (IMF) in the amount of $ 448.7 million. Also count cost of Ukraine includes payments by the government for servicing and repayment of public debt in foreign currency (excluding payments to the IMF) in the amount of 50.1 million, of which $ 12.3 million dollars for the purpose of servicing and repayment of government bonds denominated in foreign currency.

“As of September 1 the volume of international reserves cover at 3.6 months of future imports is sufficient to meet the obligations and current operations of the government and the National Bank”, – said the NBU.

As you know, the results of the July Ukraine slightly reduced reserves in connection with payments to the IMF. Next year Ukraine will start to repay debts, delay in payment which has received in 2015 as part of the restructuring.

Recall, for 2016 Ukraine’s international reserves grew by $ 2.2 billion, or 17%. At the same time, the volume of international reserves at the end of 2016 appeared below the official forecast of the NBU.

The forecast is then based on assumption of successful completion of the third review of the EFF in 2016. In this baseline scenario, the NBU is expected that the fourth tranche from the IMF in the amount of 1.3 billion dollars will go to the end of last year. In this case, and in the case of income of 600 million euros from the EC up to the end of the year, at the end of 2016 international reserves had grown to $ 17.5 billion, Respectively, failure to obtain this funding has led to the fact that the actual amount of reserves were at $ 2 billion less than projected.