Ukraine gross reserves decrease 1% in January
8 February 2021
Ukraine’s gross international reserves decreased by USD
0.31 bln, or 1.1% in January 2021, the National Bank of Ukraine (NBU) reported
on Feb. 5. The decline was mostly a result of net repayment of state foreign
currency debt.
In particular, the government spent USD 311 mln for
debt repayment and servicing, which was partially offset by USD 48 mln of local
Eurobonds placement. Net inflow from interventions on ForEx amounted to USD 20
mln. The NBU also reported a USD 69 mln decrease in the value of its securities
portfolio.
As of Feb. 1, Ukraine’s gross reserves amounted to 4.7
months of imports, the NBU said.
Evgeniya Akhtyrko: State debt
outlays will be more intensive in February as USD 470 mln of local Eurobonds
are maturing and Ukraine pays about USD 140 mln to the IMF. The size of gross
international reserves in February will mostly depend on demand for local
Eurobonds that MinFin schedules to place on Feb. 9 and Feb. 16. In addition,
the NBU might intensify the purchase of foreign currency at ForEx if
appreciation pressure strengthens.
With these ins and outs, we expect gross international
reserves to decline up to 1% in February.
