Page 32 - UKRRptJan22

The net purchase of foreign currency by the NBU at the ForEx market totaled $385mn.
At the same time, the NBU reported a $136mn decline in the value of its securities portfolio.
As of December 1, Ukraine’s gross reserves amounted to four months of imports, the NBU said.
Ukraine’s international reserves topped $30bn in November for the first time in years. Preliminary data showed that as of 1 December 2021, Ukraine's international reserves stood at $30,548.5mn. In November, the reserves grew by 3%, primarily due to the disbursement of SDR500mn from the IMF, the second tranche under the Stand-by Arrangement.
Also adding to the increase were: transactions related to public debt management; and FX inflows to the government amounted to $493.1mn, of which €250.0mn was provided by Cargill Financial Services International, Inc., and €167.4mn came from the issue of domestic government debt securities.
The government spent an equivalent of $481.7mn on the servicing and repayment of FX public debt. That includes the $251.3mn that went towards the servicing and repayment of domestic government debt securities, and the $145.2mn that was spent on the servicing of Eurobonds. The rest of the funds went to meet the government’s other FX commitments. Moreover, in November, the government and the NBU repaid $64.4mn to the IMF.
At the beginning of November, FX supply in the interbank FX market exceeded demand. At the same time, at the end of the month, the tables turned. The regulator bought $1,177.8mn and sold $792.6mn to smooth out excessive exchange rate fluctuations.
Overall in November, the NBU made net FX purchases of $385.2mn in the interbank FX market: revaluation of financial instruments (due to changes in their market value and exchange rate fluctuations). These instruments declined in value by an equivalent of $135.6mn last month.
International reserves now cover four months of future imports, sufficient for Ukraine to meet its commitments, and for the government and the NBU to make their current transactions.
32 UKRAINE Country Report January 2022 www.intellinews.com