National Bank lowers forecast for Ukraine's international reserves for 2020-2022

The National Bank of Ukraine (NBU) has lowered its forecast for the country's international reserves in 2020 from US$29.3 billion to US$27.2 billion, which nevertheless exceeds US$25.3 billion in international reserves posted as of the end of 2019. In particular, Ukraine's international reserves will total US$28.6 billion in 2021 (against US$31.6 billion projected earlier) and US$28 billion in 2022 (against US$32.3 billion), according to the regulator's estimates. As for the consolidated balance of payments, the National Bank revised downward its forecast for 2020 from a US$3.2 billion surplus to a US$1.1 billion deficit. The outlook for 2021 is more favorable: US$0.6 billion in surplus (against US$1.6 billion projected earlier) and US$1.3 billion in 2022 (against US$0.4 billion). As UNIAN reported earlier, the National Bank said the country's economy might shrink by 5% in 2020 over the quarantine restrictions to overcome the coronavirus pandemic and the global crisis, but it might resume growth in the following years. The central bank continued easing its monetary policy, cutting the key rate by 2 percentage points (pp) to a five-year low of 8% per annum. The regulator reduced the key rate for the seventh time in a row. The NBU also plans to accelerate the key rate lowering to 7% at the end of 2020. After its gradual decline this year, the rate is expected to remain at 7% in 2021 and 2022.

National Bank lowers forecast for Ukraine's international reserves for 2020-2022

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