Ukraine's international reserves hit record highs for the second month in a row

Ukraine's international reserves have once again recorded record highs for the second month in a row, the National Bank of Ukraine reports. According to preliminary data as of August 1, the country's international reserves reached $41.72 billion, up 6.9% in July. This is the second time that reserves have reached a record level in the history of Ukraine's independence.

The National Bank of Ukraine points out that the growth in international reserves is due to steady and rhythmic inflows from international partners, which exceeded the NBU's net sale of foreign currency and external public debt service. Factors that contributed to the growth include inflows to government foreign currency accounts with the NBU in the amount of $4.68 billion and other debt payments.

In total, in July, receipts from international partners amounted to $1.657 billion of macro-financial assistance from the European Union, $1.496 billion of a concessional loan guaranteed by the Japanese government through the World Bank's trust fund mechanism, and $1.3 billion of grants through the World Bank's trust fund, of which $1.25 billion came from the United States. In addition, $227.3 million was raised from the placement of foreign currency domestic government bonds.

Along with the growth of reserves, the NBU sold $1.87 billion worth of foreign currency and bought back only $12.9 million, making net sales of $1.86 billion. However, receipts from international partners were still significantly higher than the amount of NBU interventions to cover the difference between supply and demand on the foreign exchange market.

According to the NBU's estimates, the current volume of international reserves can cover imports for 5.6 months. This is another indication of Ukraine's stable financial position, which gives grounds for improving the country's economic situation and economic development.