Ukraine’s international reserves for 2021 increased by 6% .
In 2021, Ukraine’s international reserves increased to almost $ 31 billion – by 6%.
Ukraine , Ukraingate , 9 , January , 2022 | Economy
Quote
“As of January 1, 2022, Ukraine’s international reserves, according to preliminary data, amounted to 30,940.9 million US dollars. During 2021, they increased by 1.8 billion US dollars, or 6%. International reserves increased due to Ukraine’s external financing and the purchase of foreign currency by the National Bank in the foreign exchange market, “the statement said.
Details
It is reported that in August 2021 Ukraine received 1,928.2 million special drawing rights (SDRs) within the total distribution from the IMF, and in November – the second tranche from the IMF under the stand-by program of 500 million SDRs. Other related official funding was also received during the year, including around € 600 million from the European Commission.
“In total, Ukraine received $ 11.2 billion from external and domestic sources in 2021, which almost offset the payments on servicing and repaying public debt in foreign currency ($ 11.5 billion),” the statement said.
For most of the year, the supply of currency in the market prevailed over demand primarily due to favorable global conditions for the main goods of Ukrainian exports. The National Bank acted in accordance with the Strategy of Foreign Exchange Interventions and repurchased the formed surplus of currency to replenish international reserves without hindering the market trend.
It is noted that by the end of the year the net purchase of foreign currency by the National Bank exceeded $ 2.4 billion. USA. In December 2021, Ukraine’s international reserves increased by $ 342.5 million. US, or 1.1%. The increase in their volume was primarily due to foreign exchange earnings in favor of the government. In general, the dynamics of reserves during December was determined by the following factors:
first, public debt management operations. Foreign exchange earnings in favor of the government amounted to 1,365.6 million dollars. USD, in particular 858.3 million dollars. US dollars from the placement of domestic government bonds (IGLBs) and USD 105 million. USA – from the World Bank. $ 847.7 million was allocated for servicing and repaying the state debt in foreign currency. US dollars, including 588.2 million dollars. USA – for maintenance and redemption of IGLBs;
secondly, the operations of the National Bank in the interbank foreign exchange market. In order to smooth out excessive fluctuations, the National Bank bought $ 84 million on the foreign exchange market. US dollars and sold 236.5 million dollars. The United States over the past month. Thus, the net sales of foreign currency by the central bank in the foreign exchange market in December amounted to 152.5 million dollars. USA;
third, the revaluation of financial instruments. Last month, their value decreased by $ 22.9 million. USA. The current volume of international reserves provides funding for 4.1 months of future imports, which is sufficient to meet Ukraine’s commitments and the current operations of the government and the National Bank.
In addition, data on international reserves and liquidity in foreign currency are compiled and published monthly:
no later than the seventh day of the month following the reporting month – preliminary data;
no later than the 30th day of the month following the reporting month – updated data.
Addition
The NBU notes that to maintain international reserves at about $ 30 billion. The United States will allow further cooperation with the IMF and other international partners.
The Ministry of Finance expects that the next mission of the International Monetary Fund will arrive in February-March.
On Wednesday, November 24, Ukraine received the second tranche from the International Monetary Fund under the Stand-By program.
Completion of the review allowed Ukraine to receive about $ 699 million (SDR 500 million), resulting in a total of about $ 2.8 billion (SDR 2 billion) in payments under the current agreement.
The IMF’s 18-month Stand-By Program with $ 5 billion access was approved on June 9, 2020 to support balance of payments and budgets as the Ukrainian government struggles with the aftermath of the COVID-19 pandemic shock. This program is designed to consolidate past achievements and help advance Ukraine through important structural reforms to minimize key vulnerabilities.
Now the cooperation program has been extended until the end of June 2022.
Source: Ukrgate
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