In September, Ukraine’s international reserves decreased by 8.1% to $38.9B.

As noted by the National Bank, this dynamic results from the NBU’s currency interventions to cover the structural currency deficit on the market and smooth out exchange rate fluctuations, as well as the country’s debt payments in foreign currency. These operations were partially offset by proceeds from the placement of foreign currency bonds of the domestic government loan and one of the smallest volumes of international aid since the beginning of the year after significant volumes in August.

During September, international reserves dynamics were determined by several factors:

1. The NBU sold $3.2B on the FX market and bought back $0.6M for reserves.
2. $674.7M was deposited into the government’s foreign currency accounts at the NBU (from the placement of foreign currency government bonds from the World Bank and the CEB).
3. Servicing and repayment of the state debt in foreign currency in the following amounts were paid: $552.4M for currency bonds, $52.1M to the World Bank, $729.8M to the IMF, and $44M to other international creditors.