The international reserves of Ukraine have increased by 10.6% in 2018. Preliminary, as of January 1, 2019, the sum of the international reserves reached $20.8 billion as the National Bank of Ukraine (NBU) reported.
It is noted that such volume of reserves not just increased the last prediction of the NBU ($19.2 billion) but also reached the five-year maximum; last time, such level of reserves was spotted in October 2013.
“We succeeded to increase the international reserves, first of all, thanks to the external financing of Ukraine and purchase of the excess of currency at the inter-bank market by the National Bank,” the message said.
The NBU explained that the net sale of the currency by population influenced the offers of currency by banks. Thus, the National Bank got the possibility to make the net purchase of the currency in the sum of $1.4 billion without influence on the direction of movement of hryvnia rate.
In its turn, the incomes from the International Monetary Fund, the European Union and the World Bank for the support of the macro-financial stability and reforms in Ukraine made $2.4 billion. Moreover, the government attracted $6.1 billion at internal and external markets in 2018.
“The funds from the reserves were sent mostly for payments of the government and the National Bank on the service and repayment of the state debt in the foreign currency. Their total sum made $8.1 billion,” the NBU noted.
It is reported that the increase of the price for the financial tools (change of the marker price, hryvnia rate toward the foreign currencies) influenced the growth of the reserved for $230 million.
The NBU noted that totally, as of January 1, 2019, the volume of the international reserves covers 3,5 months of the future import and it is enough for the fulfillment of the commitments of Ukraine and current operations of the government and the National Bank. The continuation of the cooperation with the International Monetary Fund and balanced monetary and fiscal policy are the important factor of the preservation of the macro-financial stability of Ukraine.
As we reported, Ukraine has to pay over $1.8 billion to the IMF in 2019. According to the schedule, Ukraine has to pay 1 325,476 million special drawing rights (SDR) this year. It equals approximately $1.8 billion, according to the rate of Ukraine’s National Bank.