Ukraine gross foreign reserves increase 1.1% in January
4 February 2016
Gross international reserves of Ukraine increased 1.1% (or USD 142 mln) to USD 13.4 bln in January 2016, the National Bank of Ukraine (NBU) reported on Feb 3. The reserves cover 3.4 months of future imports.
The main sources of reserve buildup in January were USD 486 mln raised from local Eurobonds’ placement and USD 85 mln gained from swap operations. Part of the inflow was allocated to debt servicing (USD 423 mln) and ForEx interventions (USD 74 mln).
Alexander Paraschiy: The placement of local Eurobonds saved gross reserves from decline amid resumed ForEx interventions in January. Now the big question is when we might anticipate the next wire from the IMF to add an extra USD 1.7 bln to the gross reserves. The decision might be delayed again in light of the recent public scandal with Economy Minister Aivaras Abromavicius, who accused top officials of corruption (anti-corruption measures were mentioned as being among remaining issues by IMF officials). Nevertheless, we still anticipate USD 5.8 bln arriving from the IMF this year as well as EUR 1.2 bln from the EU, USD 1.0 bln from the U.S., and additional aid of about USD 1.5 bln from other Western donors. All the funds should allow for an increase of gross international reserves of up to USD 19.5 bln (4.9 months of imports) by the end of the year.
