Ukraine's international reserves drop 1.7% in September

MOSCOW. Oct 9 (Interfax) - Ukraine's international reserves as of October 1, 2023, according to preliminary data, totaled $39.708 billion, Ukrainian media reported, citing a statement from the National Bank of Ukraine.

"In September, reserves decreased 1.7% as a result of NBU interventions to sell foreign currency to cover the difference between supply and demand on the Ukrainian foreign exchange market and the country's debt payments in foreign currency, largely offset by receipts from international partners," the report said.

In September, the National Bank sold $2.692 billion on the foreign exchange market, buying back only $0.7 million.

The government's foreign currency accounts at the Central Bank received $3.329 billion in September, of which $1.592 billion was macro-financial assistance from the EU, $1.25 billion was a grant from the United States through the World Bank Trust Fund, $386.4 million was funds from the placement of foreign currency bonds of the domestic government loan (Government bonds) and $100 million from the World Bank guaranteed by Great Britain.

Meanwhile, the government of Ukraine paid $465.3 million for servicing and repaying public debt in foreign currency, of which $388.9 million was for servicing and repaying foreign currency government bonds, and $51.1 million was the debt to the World Bank. In addition, Ukraine transferred $882.1 million to the International Monetary Fund.

"The current volume of international reserves provides financing for 5.3 months of future imports," the NBU reports.