Ukraine's international reserves fell by 3.2% in September
Ukraine’s international reserves fell by 3.2% as of the end of September. As of October 1, they stood at 47.1 billion U.S. dollars.
The National Bank of Ukraine noted that the decline in reserves was influenced by the regulator’s foreign exchange interventions and Ukraine’s payments on its foreign-currency government debt. The volume of these transactions exceeded the inflows from international partners and the conversion into hryvnia of funds received under the Ukraine Support Loan program.
At the same time, the National Bank emphasized that the current level of international reserves remains sufficient to maintain the stability of the foreign exchange market.
In September, the NBU sold $5.45 billion on the foreign exchange market.
During the month, $890.4 million was credited to the government’s foreign currency accounts at the National Bank via World Bank accounts. In addition, Ukraine received $3.81 billion from the European Union as part of a defense tranche under the Ukraine Support Loan program.
These funds are not included in international reserves due to their designated purpose. At the same time, after the government sells these funds to the National Bank for hryvnia, the corresponding amount increases international reserves.
In September, the government converted all $3.81 billion received under the program into hryvnia. This contributed to the growth of international reserves. At the same time, the NBU noted that further financing of expenditures in hryvnia using these funds increases demand in the foreign exchange market and, accordingly, affects the volume of the regulator’s foreign exchange interventions.
In September, Ukraine allocated $195.7 million for servicing and repaying its foreign-currency government debt. Of this amount, $72.3 million went toward debt payments to the World Bank, $8.3 million toward servicing foreign-currency government bonds, and another $115.1 million toward payments to other creditors.
In addition, Ukraine paid $254.3 million to the International Monetary Fund.
International reserves decreased by an additional $368.3 million due to the revaluation of financial instruments and the impact of other factors.
The current level of international reserves is sufficient to finance 4.0 months of future imports, according to the NBU.
The National Bank publishes data on international reserves and foreign currency liquidity on a monthly basis. Preliminary data are published no later than the seventh day of the month following the reporting month, and revised data no later than the 21st.
Source: National Bank of Ukraine.
Ukraine’s international reserves fell by 5% over the month.
In August, the NBU transferred nearly ₴298 million to the defense budget.
Earlier, the National Bank of Ukraine imposed sanctions on three financial companies. One had its license revoked, another was ordered to rectify violations, and the third had certain operations suspended.
As a reminder, the NBU is investigating banks in connection with the collateral related to Galushchenko.
According to People’s Deputy Yaroslav Zheleznyak, during the hearing of the case against Sense Bank Chairman Oleksiy Stupak, prosecutors also disclosed a series of conversations which, according to the investigation, confirm the origin of these funds.
Mindich handed over cash to Mudriy to post bail for Galushchenko—SAP.
