In August 2024, the international reserves of Ukraine showed a significant growth, increasing by 13.7% (or by 5.096 billion dollars) to the level of 42.331 billion dollars. This became possible thanks to the support of international partners, in particular the EU and the USA. This is evidenced data National Bank of Ukraine (NBU).
This restoration of reserves after a four-month slump demonstrates the resilience of the country’s financial system. Since the beginning of 2024, the reserves of Ukraine have increased by 4.5% (or by 1.823 billion dollars).
Reasons for growth of reserves
The main factor in the increase in reserves was the significant volume of international financial assistance, which exceeded the net sale of the NBU’s currency and payments of the state debt in foreign currency. Among the main sources:
- $4.553 billion from the European Union through the Ukraine Facility;
- 3.899 billion dollars from the World Bank (grant from the USA).
Despite significant revenues, Ukraine continues to service its debt. In August, payments totaled $724.1 million, including:
- 266 million dollars in payments to the World Bank;
- 239.9 million dollars for foreign state loan bonds;
- $130.1 million in government derivatives;
- 88.1 million dollars to other international creditors.
A payment of $392.4 million was also made to the International Monetary Fund (IMF).
In August, the NBU sold $2.696 billion on the interbank market, which is 18.4% less than in July.
Record level of reserves
This increase followed a decline in reserves for several months. In March 2024, Ukraine’s international reserves reached a record level of $43.763 billion, but subsequently began to decline.
Despite the increase in August, the NBU revised its forecast for reserves at the end of 2024, lowering the expected level to $41.2 billion.
