Ukraine's int'l reserves rose 10% to 11-year high of $31.9 bln in March - National Bank

MOSCOW. April 6 (Interfax) - Ukraine's international reserves rose 10% or $3 billion during March to $31.878 billion, Ukrainian media outlets quoted the National Bank of Ukraine as saying in a statement.

"The international reserves rose to $31.9 billion in March, their highest level for 11 years," the NBU said. "Reserves increased by 10% due to inflows from international partners amid a decreased volume of net FX sales by the NBU and moderate FX debt repayments by the state," it said.

The previous high was in November 2011, it said.

A total of $5.105 billion was credited to the government's FX accounts with the NBU and included $1.757 billion from the Canadian government, $1.617 billion from the European Union, $1.253 billion from the United States through the World Bank's trust fund; $2.2 million from the International Development Association, which is part of the World Bank; and $476.5 million from the placement of FX domestic government debt securities.

Ukraine's government spent $486.8 million to service and repay FX public debt. That included $409.3 million in repayments on FX domestic government debt securities and $49.6 million to repay the debt to the World Bank. The rest went towards meeting the country's commitments to other international creditors. In addition, Ukraine repaid $638.6 million to the International Monetary Fund.

In March 2023, the NBU sold $1.674 billion in the FX market and bought $5.2 million to replenish international reserves. The NBU's net FX sales therefore fell to $1.669 billion in March 2023, down by $783.1 million from February. The NBU's interventions to sell foreign currency in Ukraine's FX market declined in volume for the third month running. The March decrease was driven by several factors: the seasonal factor; restrictions on unproductive capital outflows, including due to the regulation of the gambling business; and the stabilization of exchange rate expectations.

The value of financial instruments increased by $697.6 million in March due to revaluation.

International reserves now cover 4.2 months of future imports.