Ukraine’s international reserves have increased to $49.52 billion, up 6.4% from the previous month. The National Bank of Ukraine reported this on its official website.
The increase in reserves is due to the receipt of significant international financial assistance: $4.69 billion from the European Union under the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative, $1.08 billion through World Bank accounts, and $117 million from the Council of Europe Development Bank. In addition, the government raised almost $508 million from the placement of domestic government bonds.
In October, the National Bank’s net sale of currency in interbank market transactions increased by 24% compared to the previous month, to $2.83 billion.
According to the NBU, the current level of international reserves is sufficient to cover 5.1 months of future imports, which ensures the stability of the country’s foreign exchange market. The regulator predicts that by the end of 2025, the volume of reserves may increase to $54 billion, which will exceed the minimum sufficient level according to the IMF composite criterion by 19%.
“The NBU is making efforts to strengthen the effectiveness of monetary transmission channels and further restore the effectiveness of the key (discount) rate in fulfilling its role as the main monetary instrument. The dynamics of the discount rate and adjustments to the operational design of interest rate policy take into account significant changes in the balance of risks and are primarily aimed at maintaining the stability of the foreign exchange market, maintaining control over inflation expectations, and ensuring price stability, the report says.
