Ukraine's international reserves shrink for fourth consecutive month

Ukraine's international reserves decreased for the fourth consecutive month in July 2024, dropping by 1.8% to $37.23 billion, the National Bank of Ukraine reported on its website.

The prolonged decline is due to external financial aid not covering the amount of currency the National Bank sells on the domestic foreign exchange market. This situation may change in August as Ukraine receives a large $3.9 billion grant from the United States.

During July, $2.2 billion from the International Monetary Fund and $285.7 million from foreign currency bond placements were deposited into National Bank accounts, while $185.0 million was paid for servicing and repaying foreign currency government debt.

In July, the National Bank's net currency sales on the domestic market increased to $3.3 billion (10% more than in June).

The revaluation of financial instruments (due to changes in market value and exchange rates) increased the NBU's reserves by $342.9 million in June.

The current level of international reserves is sufficient to finance 4.8 months of future imports.

Read also: Ukraine's iron exports hit 219,000 tons in July, best wartime performance