According to July results, the National Bank sold $2,117 million on the foreign exchange market and bought back $922 million in reserves.
The amount of Ukraine’s international reserves in July 2022 decreased by $416 million – by 2% – to $22,385 million. About that reported National Bank press office.
Compared to June ($2,300 million) the rate of depletion of reserves has slowed more than five times. At the same time, since the beginning of the year, Ukraine’s reserves have fallen by 27.7% or $8,555 million.
As noted by the regulator, the NBU’s interventions and payments on state bonds in national currency were largely compensated by foreign currency loans in favor of the government.
The NBU sold $2,117 million on the foreign exchange market and bought back $922 million in reserves. The balance of NBU interventions at the end of the month was negative and amounted to 1,195 million dollars.
“The decrease in the net sale of foreign currency by the National Bank in July, compared to previous months, is mainly due to the adjustment of the official exchange rate of the hryvnia to the dollar from 9:00 a.m. on July 21, 2022 by 25% (at the level of 36.57 hryvnias per 1 dollar),” the message read.
After the establishment of the new official exchange rate of the hryvnia against the US dollar, the net demand for non-cash transactions by customers decreased significantly. Thus, from July 22 until the end of the month, a net supply of 40 to 70 million dollars per day was recorded daily on the interbank foreign exchange market.
“The decline in the volume of issuance financing to UAH 30 billion in July (from UAH 105.0 billion in June) also contributed to reducing the pressure on international reserves,” the NBU noted.
Inflows of foreign currency to the accounts of the Ukrainian government at the National Bank in July amounted to 1,563.2 million dollars. In particular, $1,049.1 million came from the German government and $514 million came from the placement of national currency government bonds (OVDP).
The total volume of payments by the government for the service and repayment of the state debt in foreign currency amounted to 677 million dollars, including 630 million dollars for the service and repayment of OVDP bonds and 47 million dollars for settlements with other creditors.
In addition, reserves were affected by the revaluation of financial instruments due to changes in market value and exchange rates. Last month, their value fell by $107.9 million.
Earlier, National Bank announced when gold and currency reserves will return to pre-war levels. As you know, at the beginning of 2022, Ukraine’s reserves amounted to 30,941 million dollars.
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