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5.2.3 Gross international reserves
Ukraine's international reserves decreased for the third month in a row.In October, they fell by 1.9% to $38.97B, NBU data shows. The bank explains that the dynamics last month were caused by the NBU's interventions and the country's debt payments in foreign currency. "At the same time, both factors were largely compensated for by income from international partners," the NBU added. So, in October, the NBU's net sale of currency amounted to $3.34B compared to $2.69B in September. The increase in interventions was primarily due to the increase in demand for currency in the first days of the transition from a fixed exchange rate to managed exchange rate flexibility. In addition, last month $3.31B was deposited into the government's foreign currency accounts at the NBU. Of this amount, $1.6B was macro-financial assistance from the EU, $1.15B was a grant from the US, and $572.7M was from the placement of foreign government bonds. The government paid $892.5M in foreign currency to service and repay state debt. In addition, Ukraine paid $80.1M to the IMF.
Ukraine invested half of its aid in US government debt. Ukraine has increased its investments in US government bonds 1.8-fold since last February, investing an amount equal to about half of the aid received from the US authorities. According to the US Treasury Department, from February last year to the end of September this year Ukraine has increased its investments in US government debt by $10.7bn up to $24.5bn, which is a record level at least since 2011. At the end of last winter, the portfolio was just $13.8bn, and at its lowest level, in the middle of last summer, it was $7.9bn. At the same time, from February 2022 to the beginning of October this year, Ukraine received from the US financial assistance for $22.9bn. Thus, Ukraine's
58 UKRAINE Country Report December 2023 www.intellinews.com