Ukraine's international reserves grow by 3.1% in April – NBU

The National Bank of Ukraine (NBU) says the country's international reserves as of May 1 totaled US$25.695 billion, which was 3.1% up from the figure reported as of April 1.

"As of 1 May 2020, Ukraine had an equivalent of US$25,695.0 million in international reserves, according to preliminary data. In April, they increased by 3.1%. The increase was primarily driven by the NBU's reserves management transactions and FX [forex] market interventions," the regulator said on its website on May 7.

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"FX demand from businesses fell sharply following a bout of panic buying in March. FX supply was more than sufficient to meet client bids, resulting in the hryvnia gaining strength and the NBU resuming transactions to ramp up international reserves," the reports said.

In particular, the NBU made US$678.8 million in net FX purchases in April. The central bank stepped in to purchase foreign currency on the days that FX supply surpassed demand, generating a total US$723.3 million in FX purchase interventions. To smooth out excessive exchange rate fluctuations that weakened the hryvnia, the NBU sold US$44.5 million during the month.

In total, the central bank in April allocated US$303.9 million for servicing and repaying public and government-guaranteed debt in foreign currency. The international reserve outflows were partially offset by proceeds from the placement of government domestic loan bonds in foreign currency worth US$164.4 million.

The country's international reserves changed also over the revaluation of financial instruments (due to changes in their market value and exchange rate fluctuations). They gained an equivalent of US$232.0 million in value last month.

"International reserves now cover 4.5 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 April 1, 2020, amounted to US$24.924 billion, which was 7.8% down from the figure reported as of March 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.