Ukraine's int'l reserves down 8.1%, net int'l reserves drop 9.9% in Sept - NBU

MOSCOW. Oct 7 (Interfax) - Ukraine's international reserves decreased 8.1%, or by $3.44 billion, to around $38.898 billion in September 2024, preliminary estimates from the National Bank of Ukraine (NBU) show.

"Such dynamics were driven by the NBU's FX interventions to compensate for the structural deficit of foreign currency and smooth out exchange rate fluctuations, as well as by Ukraine's FX debt repayments," Ukrainian media quoted the NBU as saying in a statement on its website on Monday.

Meanwhile, the NBU's net international reserves dropped 9.9%, or by $2.8 billion, to $25.544 billion in September 2024, which is below the quantitative performance criteria set in the International Monetary Fund's updated Extended Fund Facility, which projected Ukraine's net international reserves at $28.8 billion at the lowest for the end of September.

This figure should be at least $26.3 billion at the end of the year.

The NBU's forex interventions on the interbank forex exchange and debt repayments were partially offset by proceeds from the placement of forex-denominated government bonds and inflows of international assistance in September, the amounts of which were among the smallest since the beginning of the year, the NBU said.

"This has once again shown the irregularity of assistance inflows from international partners, which is typical for this time of the year," it said.

The NBU sold approximately $3.214 billion on the forex market and bought $0.6 million, the statement said. The NBU's net forex sales in September increased to $3.21 billion from $2.68 billion.

The government's forex accounts at the NBU received $674.7 million, including $603.6 million from the issuing of forex-denominated government bonds, $60 million through the World Bank, and $11.1 million from the Council of Europe Development Bank, it said.

A total of $552.4 million was spent on servicing and repaying forex public debt, including $456.3 million on servicing and redeeming forex-denominated government bonds, $52.1 million on servicing and repaying the debt to the World Bank, and $44 million on meeting Ukraine's liabilities to other international creditors.

In addition, Ukraine repaid $729.8 million to the IMF.

"Financial instruments increased by $381.8 million in value in September due to a revaluation. The international reserves are now able to cover a five-month period of future imports," the NBU said.