In April, reserves increased by 13% due to inflows from international partners amid a further reduction in net foreign currency sales by the National Bank and moderate foreign currency debt payments by the country.
This was reported by the National Bank of Ukraine (NBU).
The government's foreign currency accounts at the National Bank received $5,851.6 million. From this amount:
The Ukrainian government paid $446.0 million for servicing and repaying foreign currency public debt, of which $282.7 million was for servicing and repayment of foreign currency government bonds, $113.1 million for debt to the World Bank, and the rest for debt to other international creditors. In addition, Ukraine repaid the International Monetary Fund (IMF) $107.4 million.
In April 2023, the National Bank (according to balance data) sold $1,374.1 million on the foreign exchange market and repurchased to reserves – $3.7 million. Therefore, the net foreign currency sales by the NBU last month decreased by $298.5 million compared to March 2023 – to $1,370.4 million. The NBU's intervention volumes in selling foreign currency in Ukraine's foreign exchange market have been declining for the fourth consecutive month. Such dynamics in April were due to both sectoral factors (reduction in energy imports, increased currency sales for the planting season, and some activation of mining and metallurgical enterprises) and the further restriction of unproductive capital outflows from Ukraine. In addition, the NBU's consistent monetary policy aimed at increasing the attractiveness of hryvnia assets and refusal to directly finance the budget deficit in 2023 contributed to the stabilisation of exchange rate expectations.
Background. Mind previously reported that since the beginning of the war, the government has attracted almost UAH 429 billion through the sale of domestic government bonds – NBU.