Ukraine's international reserves in May 2021 shrank by 0.6%, to US$27.840 billion in the equivalent as of June 1, 2021.
The reduction was due to the repayment of external and internal debts by the state, which were partially offset by foreign exchange (FX) earnings in favor of the government, the press service of the National Bank of Ukraine said on June 7.
In general, according to the National Bank, the dynamics of reserves during May 2021 were determined, in particular, by operations to manage the public debt.
"The government spent an equivalent of US$650.6 million on the servicing and repayment of FX public debt. That includes the US$529.3 million that went towards the servicing and repayment of domestic government debt securities. The rest of the funds went to meet the government’s other FX commitments," it said.
At the same time, foreign exchange earnings in favor of the government amounted to US$417.9 million, of which US$354.3 million came from the placement of government bonds. In addition, the NBU and the government paid US$64.3 million to the International Monetary Fund in May 2021.
Also, according to the regulator, the dynamics of reserves were influenced by the revaluation of financial instruments due to changes in the market value and exchange rates. Last month, their value increased by US$136.8 million (in the equivalent).
The NBU says that the interbank foreign exchange market in May 2021 was balanced, so the National Bank did not conduct foreign exchange interventions.
"The international reserves now cover 4.2 months of future imports, sufficient for Ukraine to meet its commitments, and for the government and the NBU to make their current transactions," it reported.
Indicators at the end of 2020
- At the end of 2020, Ukraine's international reserves increased by 15%, to US$29.1 billion in the equivalent as of January 1, 2021.