Ukraine's international reserves fall by 8.1% in September, National Bank says
As of 1 October 2024, Ukraine’s international reserves amounted to US$38.9 billion, representing a decrease of 8.1% in September.
Source: National Bank of Ukraine (NBU)
Details: According to the NBU’s press release, this decline was driven by the NBU’s foreign exchange interventions to cover the structural deficit in the foreign exchange market and stabilise exchange rate fluctuations, as well as the country’s debt payments in foreign currency.
Quote: "These operations were partially offset by proceeds from foreign currency-denominated domestic government bonds and one of the smallest volumes of international assistance received this year, following large inflows in August. This has once again highlighted the irregular pattern of aid from international partners in 2024."
In September, US$674.7 million was received in government foreign currency accounts at the National Bank, broken down as follows:
- US$603.6 million from the placement of foreign currency-denominated government bonds;
- US$60.0 million from the World Bank;
- US$11.1 million from the Council of Europe Development Bank.
At the same time, US$552.4 million was paid to service and repay the government’s foreign currency debt, including:
- US$456.3 million for servicing and repaying foreign currency-denominated government bonds;
- US$52.1 million for servicing and repaying debt to the World Bank;
- US$44 million paid to other international creditors.
Additionally, Ukraine made a US$729.8 million payment to the International Monetary Fund.
The net foreign currency sales by the NBU in September amounted to US$3.213 billion.
Background: The National Bank of Ukraine has loosened certain currency restrictions since 10 September to support the country’s defence capabilities, the operation of Ukrainian businesses, and the nuclear insurance pool.
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