Gold and Foreign Currency Reserves of the National Bank Reached $14 Billion

According to the National Bank of Ukraine the preliminary estimates of the international reserves of Ukraine as of July 1, 2016 amounted to the equivalent of $13.988 billion.

"The amount of reserves is increasing for a third month in a row. During June it increased for 3.3% or $452 million. Within the last 12 months the reserves increased for 36.3%" — states NBU to the media.

The primary reason behind the increase of the reserves in June was acquisition of the foreign currency to mitigate the rate fluctuations on the interbank currency exchange and to replenish the reserves. The net acquisition of the currency by the NBU during June 2016 was 429.6 million dollars. There were no auctions on sale of the foreign currency conducted by NBU during June.

Another reason behind the increase of the reserves are revenues of the government in the amount of $70 million, including $50 million revenue from placement of the state dollar bonds.

The reserves increased despite payment of the state debt in foreign currency, amounting to $171.2 million, including $164.2 million of premiums and service fees on the state-guaranteed securities.

As a result the international reserves of Ukraine now cover 3,6 months of import and are sufficient to perform obligations and daily operations of the government and the National Bank.

Source: Ukrayinska Pravda