Over the past few months, currency inflows to Ukraine have significantly decreased, which is explained by two factors: the deficit of foreign trade and the reduction of financial aid from partner countries.
According to Forbes, trade is one of the two key factors that increases the balance of payments deficit. The trade balance remains $2.9B in the negative. The negative balance of payments in July-August was $2.8B, but a year earlier, it was positive with a surplus of $3.5B.
In August, the situation was aggravated by the delay of a $1.25B grant from the US. Also, Ukraine’s international reserves have fallen by $2B in two months.
Uncertainty about next year’s international aid adds to the problem. Revenue from partners has decreased significantly: from $3.25-$4.45B in May-July to $1.65-$2.9B in August-October. Most of these funds came in the first months of the year. The publication notes that this increases the pressure on the hryvnia, which recently returned to a floating rate against the dollar.