International reserves fell by another 1.8% amid currency sales, but after the US grant exceeded $40 billion - NBU

Ukraine's international reserves decreased by 1.8% to $37.2 billion in early August, but later exceeded $40 billion thanks to a U.S. grant. This was reported on Tuesday by the NBU, explaining the drop in July by the sale of foreign currency "to cover the structural deficit" in the market and smooth out exchange rate fluctuations, UNN writes.

Details

"As of August 1, 2024, Ukraine's international reserves, according to preliminary data, amounted to USD 37,231.9 million. In July, they decreased by 1.8%," the statement said.

According to the regulator, "such dynamics is due to the NBU's foreign exchange interventions to cover the structural shortage of foreign currency in the market and smooth out exchange rate fluctuations, as well as the country's debt payments in foreign currency.

These operations were partially offset by receipts from international partners and from placement of foreign currency domestic government bonds (FX domestic government bonds).

The NBU reportedly sold USD 3,306.8 million on the foreign exchange market and bought back USD 1.8 million to reserves. "Thus, the NBU's net foreign exchange sales in June amounted to USD 3 ,305.0 million," the NBU said.

The government paid USD 185.0 million for servicing and repaying the public debt in foreign currency. At the same time, the government's foreign currency accounts at the National Bank received USD 2,482.7 million.

"It is worth noting that in early August, Ukraine received a grant from the United States of America in the amount of USD 3.9 billion, bringing its international reserves to over USD 40 billion," the NBU said.

Ukraine receives $3.9 billion grant from the US - ShmyhalAug 5 2024, 08:50 AM • 17263 views