National Bank of Ukraine / Photo from UNIAN

Ukraine's international reserves stood at US$ 28.1 billion (in the equivalent) as of May 1, 2021, the National Bank's preliminary data showed.

In April, international reserves increased by 3.6% due to forex proceeds to the government and revaluation of financial instruments, the report reads.

The regulator says international reserves last month were affected by a number of factors related to public debt management.

The government received US$ 1.371 billion in forex proceeds, including $1.25 billion from sovereign eurobond placement and $121.4 million from domestic government debt securities placement.

Read alsoRuling faction leader names conditions for Ukraine to secure IMF fundsAt the same time, the government spent an equivalent of $556.1 million on servicing and repayment of forex public debt. Another $391.5 million went toward servicing and repaying eurobonds, while $78.0 million was spent on servicing sovereign eurobonds. The rest of the funds went to meet the government's other forex commitments.

Also, it was the revaluation of financial instruments, due to changes in their market value and exchange rate fluctuations, that influenced foreign reserves.

Last month, the value of these instruments increased by $200 million (in the equivalent).

The NBU adds it pursued interventions in the interbank forex market.

In April, the interbank foreign exchange market was mostly balanced, the regulator says.

"At the same time, at the beginning of the month, demand for foreign currency somewhat exceeded supply. To smooth out excessive exchange rate fluctuations that weakened the hryvnia, the NBU intervened by selling USD 50.0 million," the report reads.

International reserves now cover 4.3 months of future imports, sufficient for Ukraine to meet its commitments, and for the government and the NBU to make their current transactions.