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5.2.3​ Gross international reserves
Ukraine’s gross international reserves dropped 8.7% m/m, or $2.5bn, to $26.5bn in September ​after growing 0.9% m/m in August, the National Bank of Ukraine (NBU) reported on October 7. The decline was mostly the result of peak repayment on external debt. Total outlays related to external debt repayment and servicing amounted to $2.7bn (in the equivalent).
In particular, the redemption and servicing of international Eurobonds called for $2.2bn. Repayments to the IMF totalled $417mn. At the same time, foreign currency inflow to government accounts amounted to $445mn, including the receipts from the placement of local Eurobonds for $112mn.
The NBU’s net sale of the foreign currency at Ukraine’s Forex during September amounted to $232mn. The increased demand for foreign currency was caused by a revival in business activity, as well as more intense purchases of foreign currency by importers and companies that were required to repay their foreign debts.
The NBU also reported a $106mn decline in the value of its securities portfolio.
As of September 1, Ukraine’s gross reserves amounted to 4.3 months of imports, the NBU said.
The active build-up of foreign reserves during previous months helped the country get through smoothly the September peak payments on foreign debt.
Government outlays in foreign currency will be relatively low in October. In
33​ UKRAINE Country Report​ November 2020 ​ ​www.intellinews.com