REUTERS
The rise was due to the favorable situation on the foreign exchange market.
International reserves of Ukraine in August grew by 1%, amounting to $29.05 billion, National Bank's preliminary data says.
Growth of international reserves was primarily due to the favorable situation on the foreign exchange market, according to the NBU report.
Foreign currency purchase on interbank market
It is noted that, in general, the dynamics of reserves throghout August was determined, in particular, by the NBU operations on the interbank foreign exchange market.
"In August, the supply of foreign currency exceeded demand, so the National Bank could replenish international reserves. In total, the NBU bought $460.5 million in August. There were no interventions to sell foreign currency last month," the statement says.
Sale of government bonds
Also, the regulator says the government's operations on public debt management also influenced the dynamics of reserves.
Foreign exchange inflows in August amounted to $250.5 million from the sale of domestic government bonds denominated in foreign currency.
"At the same time, (the equivalent of) $645.2 million was allocated to service and repay the state debt in foreign currency.
Of this amount, $496.5 million was paid through government bonds denominated in foreign currency, while the rest – on liabilities to foreign creditors.
Read alsoFitch affirms Ukraine at 'B' with stable outlook
Changes in forex rates
The statement says there was also a revaluation of financial instruments due to changes in market value and exchange rates. Last month, their value increased by $385 million.
It is noted that the current volume of international reserves covers 4.8 months of future imports, which is sufficient to fulfill Ukraine's liabilities and current operations by the government and the National Bank.
Foreign reserves: background