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In July, Ukraine’s balance of payments switched to a $88mn deficit from a $978mn surplus in June. In 7M20, the surplus of the balance of payments amounted to $1.1bn (vs. a $2.0bn surplus in 7M19).
The accelerated declines in both the export and import of goods in July implies that Ukraine’s external trade is still highly affected by the corona crisis. Most exporters and importers are not able to attain a consistent month-to-month improvement, and their performance is quite bumpy and weak.
5.2.3 Gross international reserves
Ukraine's international reserves grew by 1% in July and stood at $28.802bn as of August 1, 2020, having hit an eight-year high since the autumn of 2012. Boosted by the IMF tranche, this is the highest level in eight years.
Reserves were growing throughout the month thanks to the government's successful placement of eurobonds, as reported by the National Bank of Ukraine (NBU).
Overall, changes in international reserves were driven by the following factors:
First, the government's servicing of public debt. Forex (FX) earnings for the benefit of the government in July were $1.75bn, including $1.12bn on the account of sovereign Eurobond placement and $608.2mn – FX domestic government debt securities placement. At the same time, the government spent $1.5bn on servicing and repaying public debt denominated in foreign currency. Of that amount, $767mn were paid for hryvnia-denominated
33 UKRAINE Country Report September 2020 www.intellinews.com
