In August 2020, Ukraine's international reserves increased by 1% and exceeded 29 billion dollars. This was reported by the press service of the National Bank of Ukraine (NBU).
The NBU explained that the growth of reserves was due to the favorable situation in the foreign exchange market.
In general, the dynamics of reserves was determined by the following factors:
Operations of the National Bank on the interbank foreign exchange market: In August, the NBU bought a total of 460.5 million dollars. No foreign exchange interventions were carried out last month.
Government debt management operations: In August, foreign exchange earnings in favor of the Ukrainian government amounted to 250.5 million dollars (from the sale of domestic government bonds (IGLBs) denominated in foreign currency). In addition, the government and the National Bank paid 204.5 million dollars (in equivalent) to the International Monetary Fund.
Revaluation of financial instruments (due to changes in market value and exchange rates): Last month, their value increased by 385 million dollars (in equivalent).
As we reported earlier, according to the forecast of the Fitch rating agency, Ukraine's GDP will have decreased by 6.5% by the end of this year.