9 Aug 2022 12:21

Foreign support not yet enough to maintain Ukraine's int'l reserves - NBU

MOSCOW. Aug 9 (Interfax) - The whole world's financial support, even though it is unprecedented, is not yet enough to keep Ukraine's international reserves unchanged, Ukrainian media outlets quoted National Bank of Ukraine (NBU) First Deputy Governor Kateryna Rozhkova as saying at the European Business Association's online meeting.

Since martial law was declared in Ukraine, the NBU has sold a little over $14 billion from the country's international reserves, and over $16 billion since the beginning of 2022, whereas Ukraine has received $13.7 billion from international partners, Rozhkova said.

"Of course, we put great hope on grain export, which is underway now, that it will help us improve the situation. However, we understand that we need to search for sources of financing. That's why, we ought to be careful as regards our reserves," she said.

The measures being taken by the NBU have demonstrated positive results, she said. For instance, the NBU's latest decision to tie the hryvnia to the market exchange rate of the U.S. dollar has already shown that pressure on the country's international reserves is decreasing, Rozhkova said. Whereas prior to that banks had purchased $100 million on average for their own reserves via compensation for payments by card, etc., after July 22 this figure dropped by almost three-fold. Whereas before July 21 client operations were deficit-ridden and clients' foreign currency demand was every day $60 million higher than its supply, a surplus can already be seen after this decision. Although this surplus is still small, it is already visible, and sales of foreign currency proceeds from exports are also growing, she said.

The Ukrainian economy is adapting little by little, changing some its priorities, Rozhkova said. A large number of enterprises are switching to state orders, which cover the country's strategic needs. The fact that Ukraine's economy keeps working is largely thanks to the efforts of the country's banking system, she said.