Ukraine’s international reserves fell by 5%.

 Ukraine’s international reserves decreased by 5%, to $29.3B in January, reported the National Bank of Ukraine (NBU). This results from NBU currency interventions to smooth the excessive fluctuations in the foreign exchange market. In January, the demand for currency increased significantly due to geopolitical tensions. Seasonal activation of budget payments at the end of 2021 and high prices for energy carriers also affected the demand. The sale of foreign currency helped moderate a temporary surge in market demand. The situation normalized at the end of the month, and the NBU returned to standard purchases of foreign currency.