Ukraine could get USD 1.5 bln from IMF to boost F/X reserves

The International monetary Fund’s executive board supported the allocation of the IMF’s reserve asset, Special Drawing Rights (SDRs) equal to USD 250 bln to provide liquidity to the fund’s 186 member countries’ foreign exchange reserves. About USD 100 bln of the new allocation would be directed to emerging market and developing countries. With the IMF board of governors’ final approval, the funds are to be disbursed on August 28. The plan envisages allocating SDR 1,017.1 mln to Ukraine, the equivalent of USD 1,585 mln, to bolster the National Bank of Ukraine’s currency reserves. Andrii Parkhomenko: The move will increase Ukraine’s central bank reserves by 6% (if we use June’s number of USD 27.3 bln). However, to make use of funds for currency market interventions, the NBU will first have to exchange the SDRs into US dollars.