Ukraine gross reserves rise 6.4% in June

Ukraine’s gross international reserves increased 6.4%
m/m, or USD 1.2 bln, to USD 20.6 bln in June after declining
5.5% m/m in the previous month, the National Bank of Ukraine
(NBU) reported on July 5. The placement of international Eurobonds and foreign
currency purchases by the central bank on Ukraine’s ForEx market contributed to
the increase of gross international reserves in June.

The total receipts from the placement of local and
international Eurobonds amounted to USD 1.6 bln. In particular, the placement
of international Eurobonds brought EUR 1.0 bln, while the receipts from the
sale of local Eurobonds amounted to USD 326 mln and EUR 148 mln. At the same
time, the government’s outlays for the redemption and servicing debt in foreign
currency amounted USD 952 mln.

In June, the NBU purchased USD 322 mln on Ukraine’s
ForEx. The central bank also reported an increase in the value of its
securities portfolio of USD 255 mln (adjusted to market value and the currency
exchange rate).

As of July 1, Ukraine’s gross reserves amounted to 3.4
months of imports, the NBU said.

Evgeniya
Akhtyrko: A significant increase of gross international
reserves in June is a good achievement for maintaining macroeconomic stability
in the country. Now, Ukraine has a much stronger position for fulfilling its
foreign-currency payments through the end of the year.

In July, Ukraine is to redeem
local Eurobonds for USD 508 mln. This outlay is likely to be compensated by the
placement of new local Eurobonds and the purchase of foreign currency by the
central bank on the ForEx market. We expect gross international reserves in
July to remain at the level of the previous month.