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5.2.3​ Gross international reserves
Ukraine’s gross international reserves increased 3.1% m/m to $25.7bn in April ​after dropping 7.8% m/m in March, the National Bank of Ukraine (NBU) reported on May 7.
The growth was mostly due to the NBU’s purchase of foreign currency at Ukraine’s forex market.​ The net purchase of foreign currency by the NBU in April amounted to $679mn (vs. $2.2bn in net sales in March). The central bank noted that demand for foreign currency declined in April after panic-buying in the prior month.
In April, the redemption and servicing of foreign currency debt required $304mn​ (in the equivalent). In particular, payments on local and international Eurobonds amounted to $127mn and $78mn respectively. The rest of the payments involved obligations to other international creditors and financial institutions. These outlays were partially compensated by receipts from the placement of local Eurobonds for $164mn.​ ​ ​ ​The NBU also reported a $232mn rise in the value of its securities portfolio.
As of May 1, Ukraine’s gross reserves amounted to 4.5 months of imports, the NBU said.
In May, Ukraine’s outlays in foreign currency will be high. ​They will include the redemption and servicing of US-guaranteed Eurobonds of $1,009mn, the redemption and servicing of local Eurobonds of $334mn and repayments to the IMF of about $320mn. These outlays are likely to be partially compensated by the purchase of foreign currency by the NBU. With all the ins and outs, reserves are likely to lose around 3% in May.
35​ UKRAINE Country Report​ June 2020 ​ ​www.intellinews.com