As of August 1, 2020, Ukraine's foreign currency reserves totaled 28.8 billion U.S. dollars, which is 1% more than the sum observed as of July 1, 2020. Press office of the National Bank of Ukraine reported that on Friday.
The bank explained that the reserves grew thanks to the successful deployment of Eurobonds by the government.
In general, there were three factors that affected the dynamics of currency reserves: government operations for managing the state debt, National Bank operations on the interbank currency market, and re-evaluation of financial tools due to changes of market prices and currency exchange rates.
The current volume of foreign reserves covers 4.9 months of future import, which is enough for Ukraine's government and the National Bank to live up to its commitments.
Previously, the Bank claimed that the country's economy began to gradually restore after the coronavirus-caused crisis. That entails growth of prices, too, and thus, the inflation will speed up to 4.7 percent.