Ukraine reserves grow 2% to USD 18 bln in June
6 July 2017
Ukraine’s gross international reserves grew 2.0%, or USD 352 mln, to USD 18.0 bln, the National Bank of Ukraine (NBU) reported on July 5. The growth resulted from central bank purchases of USD 300 mln at the ForEx. Of that amount, USD 5.8 mln was allocated on debt servicing. The current level of reserves covers 3.7 months of future imports.
Alexander Paraschiy: The season of excessive hard currency supply continues. May statistics revealed the return of individual cash to the banking system was the main source for foreign currency inflow, while the trade balance worsened and FDI shrunk. Ukrainians traditionally sell more foreign currency cash on the heels of hryvnia strengthening. We expect the tendency to continue through the summer but we anticipate the return of a foreign currency deficit in September amid a widening C/A deficit.
We are also expecting IMF and EU loans in 2H17, as well as funds from a Eurobond placement, to feed a further rise in gross reserves. We are keeping our gross reserves projection unchanged at USD 19.5 bln (4.0 months of imports) by the year end.
