REUTERS
The decrease in the international reserves was primarily driven by the NBU's significant currency interventions.
The National Bank of Ukraine (NBU) says the country's international reserves as of April 1 totaled US$24.924 billion, which was 7.8% down from the figure reported as of March 1, that is, the reserves dropped to the level registered at the beginning of the year.
"Ukraine held the equivalent of US$24,923.7 million in international reserves as of April 1, 2020, according to preliminary data. After growing in January through February, the international reserves in March declined by 7.8% to return to a level close to where they started the year," the regulator said on its website on April 7.
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The decrease in the international reserves during March was primarily driven by the NBU's significant currency interventions, which were intended to smooth out excessive exchange rate fluctuations fueled by speculative demand for foreign currency from businesses and households. During such interventions, the regulator sold US$2.2 billion over the month.
In addition, the government in March channeled US$1.1 billion from the reserves into servicing and repayment of state and government-guaranteed debt in foreign currency.
Moreover, the government in March raised US$873.2 million and EUR 276.9 million through the placement of government domestic loan bonds in foreign currency.
Positive revaluation of the reserves due to changes in market value and exchange rates amounted to US$16.6 million.
"The international reserves now cover 3.7 months of future imports, which is sufficient for Ukraine to meet its obligations, and for the government and the NBU to make their current transactions," the regulator said.
UNIAN memo. Ukraine's international reserves as of March 1, 2020, amounted to US$26.6 billion, which was 1.3% up from the figure reported as of February 1.
Ukraine's international reserves in 2019 grew by 22%, to US$25.3 billion as of January 1, 2020, having hit a seven-year high since December 2012.