Ukraine's int'l reserves grew by 4.4% reaching $40.5 billion in Dec 2023

MOSCOW. January 9 (Interfax) - According to preliminary data, international reserves of Ukraine increased by $1.722 billion, or 4.4%, in December after a decline lasting for four months and reached $40.507 billion, which is the second highest in history after July 2023, Ukrainian media outlets said with a reference to the National Bank of Ukraine (NBU).

"They increased by 4.4% compared to November thanks to foreign currency inflows from international partners, which exceeded the NBU's net foreign exchange sales and Ukraine's foreign exchange debt repayments," the NBU said.

Ukraine's international reserves grew by 42%, or $12.01 billion, in total in 2023, it said.

Net international reserves increased by $1.167 billion, or 4.3%, in December, and their growth reached 54.9%, or $10.05 billion, in total in the past year.

The NBU said it sold $3.559 billion on the foreign currency market in December and purchased $6.1 million for the reserves, therefore its net sale reached $3.553 billion, having increased by 1.4 in comparison with November and slightly growing from October's figures of $3.34 billion.

"The increase of interventions by the NBU in currency sales last year is associated primarily with the seasonal factor, in particular, due to an increase of budgetary spending at the end of the year," the NBU said.

At same time, $5.546 billion were transferred to the government's foreign currency accounts in the National Bank, whereas $708.2 million were paid as part of servicing and settling the foreign currency national debt.

In addition, the cost of financial instruments increased by $426.7 million as a result of reevaluation in December.

"The current amount of international reserves provides financing for 5.4 months of future imports," the NBU said.

As reported, Ukraine's national reserves were decreasing for the third month in a row in November, by 0.5% to $38.785 billion.