Page 37 - UKRRptJune18

5.2.3 Gross international reserves
The National Bank of Ukraine (NBU) increased international reserves by $1.2bn due to the net purchase of foreign currency in the interbank foreign exchange market since the beginning of the year, the regulator's governor Yakiv Smolii told journalists on May 24.
"In view of the excess of currency supply over demand, the NBU took the opportunity to increase international reserves necessary to ensure macro financial stability without creating pressure on the movement of the exchange rate," Interfax news agency quoted Smolii as saying.
According to official data, Ukraine's foreign exchange reserves rose by $229mn , or 1.3% month-on-month to $18.421bn in April.
At the same time, Kyiv faces the peak of the external debt burden in 2020, when Ukraine has to repay $6.75bn, according to the NBU's documents e-mailed earlier to bne IntelliNews. Then in 2021 and 2022, Ukraine will have to return another $4.29bn and $4.12bn to external creditors.
According to Smolii, the growth of the currency supply in the interbank market was supported by the monetary policy of the central bank, high prices for Ukrainian exports, specifically, metal, ore and grain, as well as activation of banks after the recent decision of the regulator to expand their ability to conduct own operations with foreign currency.
"These factors ensured the strengthening of the hryvnia both to the US dollar and to the currencies of the partner countries of Ukraine," he said.
37 UKRAINE Country Report June 2018 www.intellinews.com