The NBU explained the reasons for the sharp decline in reserves in the accounts of Ukraine

Ukraine’s international reserves totaled us $17.7 billion in the equivalent as of August 1 of the current year. Thus, in July, the reserves declined by 1.3%.

В НБУ пояснили причины резкого сокращения резервов на счетах Украины‍

Such preliminary data published by the national Bank of Ukraine (NBU).

As explained in the NBU, the reduction in reserves was primarily due to payments on the public debt in foreign currency.

“On the servicing and repayment of public and publicly guaranteed debt in foreign currency (excluding payments to the IMF) was sent to $321.5 million In particular, $231.6 million on servicing and repayment of government bonds denominated in foreign currency”, – stated in the message controller.

Also on the volume of reserves was affected by the interventions of the National Bank on the interbank currency market. As in June, given the predominance of demand for currency over its offer, in July the NBU to smooth excessive exchange rate fluctuations had to go in the interbank market. For the month net sales of foreign currency amounted to $644 million.

In particular, in the first half of July, the national Bank bought $99 million by way of intervention for the best prices. In the second half he stepped up the sale of foreign currency to avoid excessive volatility of the exchange rate — at the end of the month sold was $163.3 million, including through intervention in the choice of the best price — $135.2 per million and during the auction — $281 million.

At the same time the main source of replenishment of reserves in July remained revenues to the government from the placement of government bonds denominated in foreign currency, in the amount of $130,9 million and €60.5 million

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In addition, the volume of reserves was affected by the revaluation of financial instruments (change in market value of the U.S. dollar against other currencies and banking metals) in the amount of $459 million

Overall, as of August 1, 2018, the volume of international reserves cover of 3.0 months of future imports. At the same time, a month ago (in July), the figure was 3,2 months of import.

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