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Ukraine’s intl reserves increase by 6% in 2021, to $ 30.9 bln – NBU

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KYIV. Jan 6 (Interfax-Ukraine) – The international reserves of Ukraine as of January 1, 2022, according to preliminary data, amounted to $ 30.941 billion (equivalent), which is 6% more than at the beginning of 2021 ($ 30.549 billion), according to the data of the National Bank of Ukraine (NBU).

“As of January 1, 2022, according to preliminary data, Ukraine’s international reserves amounted to $ 30.941 billion. In 2021, they increased by $ 1.8 billion, or by 6%. The international reserves increased due to the receipt of external financing by Ukraine and the purchase of foreign currency by the National Bank in the foreign exchange market,” the report says.

It is indicated that in December the reserves increased by $ 342.5 million, or 1.1%.

The National Bank notes that the dynamics of reserves in December was affected by operations to manage the state debt: the total volume of payments for servicing and repaying state and state-guaranteed debt in foreign currency amounted to $ 847.7 million in equivalent.

It is specified that $ 588.2 million was spent on servicing and redeeming government domestic loan bonds.

At the same time, in December, foreign exchange receipts in favor of the government amounted to $ 1.366 billion in equivalent, including $ 105 million from the World Bank and $ 858.3 million from the placement of domestic government bonds.

The dynamics of reserves was also influenced by the operations of the NBU in the interbank market. In order to smooth out excessive fluctuations, the National Bank bought back $ 84 million in the foreign exchange market and sold $ 236.5 million. In general, in December, the volume of net sales of foreign currency by the National Bank in the interbank foreign exchange market amounted to $ 152.5 million.

In addition, the dynamics of the indicator was influenced by the revaluation of financial instruments: last month their value decreased by $ 22.9 million in equivalent, according to the NBU data.

The regulator noted the volume of international reserves covers 4.1 months of future imports – this is enough to fulfill the obligations of Ukraine, the current operations of the government and the National Bank.

In addition, the NBU clarified that Ukraine’s net international reserves in December increased by $ 390 million, or 1.9%, to $ 20.767 billion.