Ukraine’s international reserves grow to almost $30 billion
The NBU was able to increase international reserves (Photo:НБУ/Flickr)
Ukraine’s international reserves amounted to $29.9 billion as of Feb. 1, 2023, the National Bank of Ukraine (NBU) reported on Feb. 7.
According to the NBU, the central bank's foreign currency reserves grew by 5% in January, mainly due to inflows to the government’s accounts and spending on servicing and repaying public debt.
Meanwhile, forex inflows to the government’s accounts with the NBU amounted to $4.3 billion. This included:
- $3.2 billion from the European Union;
- $1 billion from the United States (through the World Bank’s trust fund);
- $71.6 million from offering forex-denominated domestic government debt securities.
The central bank noted that the government of Ukraine had spent a total of $65 million on servicing and repaying forex-denominated public debt. In particular, $59 million was allocated to service and repay debt to the World Bank, $5 million was spent for repaying forex-denominated domestic government debt securities, while the rest went to repaying debt to other international creditors.
The NBU’s Ukrainian forex market transactions were the second factor leading to this positive figure.
In January, the NBU sold close to $3.1 billion and bought $28.5 million on the forex market to replenish its reserves. Net forex sales as a result fell by about $100 million from December 2022.
Finally, the third factor in the growth of Ukraine’s reserves was the revaluation of financial instruments (due to changes in their market value and exchange rate fluctuations). In January, the value of financial instruments increased by $225.7 million due to this revaluation.
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