Ukraine's foreign exchange reserves shrink to 11-year low of $7.5 bln
The foreign exchange reserves of the National Bank of Ukraine were $7.533 billion as of January 1, which is 24.4% or $2.433 billion down compared to December 1, according to preliminary NBU data posted on the central bank’s Web site.
The country’s foreign exchange reserves have hit the lowest level in nearly 11 years – they were last almost as low, at $7.634 billion dollars, in February 2004.
According to the NBU, since the beginning of the last year, reserves have declined by $12.883 billion, or by 63.1%.
As UNIAN reported earlier, as of December 1, 2014, the foreign exchange reserves of the NBU amounted to $9.966 billion, $10,450 billion, or 51.19% less than at the beginning of the year. In November reserves hit a 10-year low of $9.715 billion.
According to the NBU, reserves have shrunk because it has had to transfer funds to national oil and gas company Naftogaz Ukrainy so it can pay for natural gas imports. Reserves have also been spent on the repayment and servicing of state foreign currency debts, particularly to the International Monetary Fund.
On top of that, money was spent on interventions on the interbank foreign exchange market to support the hryvnia exchange rate.
In 2013 NBU reserves fell by 16.83%, or by $4,130 billion, to $20.416 billion.