NBU’s Foreign Currency Reserves Reach USD 27.3 bln in July

The National Bank of Ukraine said last week that its foreign currency reserves grew 5.4% in July to USD 27.3 bln. Oleksandr Klymchuk: The moderate current account deficit, and growing inflows of FDI and portfolio investments are bringing an excess supply of foreign currency to the local FX market, forcing the NBU to intervene in order to prevent a hryvnia revaluation. In May-July NBU interventions increased its reserves by more than 16%, which is reminiscent of February-April 2005 and fuels expectations of another revaluation.