Ukraine reserves grow 1.4% to USD 18.0 bln in August
6 September 2017
Ukraine’s gross international reserves grew 1.4% (USD
240 mln) in August to USD 18.0 bln, the National Bank of Ukraine (NBU) reported
on Sept. 5. The growth was driven by a local Eurobond placement (USD 352 mln)
and NBU interventions at the ForEx (USD 234 mln net). Among outlays, USD 362
mln was returned to the IMF and UAH 137 mln was paid to serve interest rates
(including USD 87 mln to the IMF). By September, gross international reserves
covered 3.6 months of future imports.
Alexander Paraschiy: Reserves benefited from a recent tendency in export price recovery.
However, in early September we are already observing the NBU selling U.S.
dollars to ease depreciation pressure on the hryvnia. For the year’s remainder,
the only potential sources of replacement will be an IMF loan tranche (about
USD 1.0 bln) and potential Eurobond placement (USD 0.5 bln). Given that Ukraine
has to pay back USD 520 mln to the IMF this year and there will be more NBU
interventions to prevent local curency volatility, we expect gross reserves
increasing only slightly to USD 18.5 bln in 2017.
However, in early September we are already observing the NBU selling U.S.
dollars to ease depreciation pressure on the hryvnia. For the year’s remainder,
the only potential sources of replacement will be an IMF loan tranche (about
USD 1.0 bln) and potential Eurobond placement (USD 0.5 bln). Given that Ukraine
has to pay back USD 520 mln to the IMF this year and there will be more NBU
interventions to prevent local curency volatility, we expect gross reserves
increasing only slightly to USD 18.5 bln in 2017.
