NBU expects reserves to once again rise to $30B

The National Bank of Ukraine expects the country’s foreign reserves to exceed $30 billion by the end of the year.
That’s according to Deputy Chairman of the NBU, Serhiy Nikolaychuk, who spoke at a KSE live morning show, the central bank's press service reported on Facebook as seen by Ukrinform.

"If we talk about our expectations regarding reserves, there will be no tangible payments on foreign currency debts in the fourth quarter. Instead, the government will be able to replenish reserves through borrowings. This is primarily about an IMF loan, as well as a second tranche from the European Commission and a tranche from the World Bank. If all these plans are put to life, for which we hope there are all grounds, by year-end the reserves will again be above US$30 billion," Nikolaychuk said.

The central bank’s senior official recalled that in September 2021, the reserves dropped by 9.2%, to $28.7 billion, first of all, given that it was in that month that Ukraine performed the main payments on this year's foreign debt. In particular, the government repaid U.S. government-guaranteed bonds and restructured Eurobonds, as well as interest on external borrowings. The total amount of payments was the equivalent of nearly $2.6 billion.

"In addition, the decrease in the dollar equivalent of reserves was affected by the exchange rate revaluation of assets in other currencies and gold (-$202 million).

Instead, the National Bank was able to buy foreign currency in the interbank foreign exchange market. Last month’s net purchase stood at nearly $140 million," Nikolaychuk added.

As Ukrinform reported earlier, Ukraine's foreign reserves as of October 1, 2021, amounted to $28.705 billion, having decreased by 9.2% in September. International reserves rose to $31.61 billion in August, reaching a nine-year high.