Ukraine’s central bank reserves up USD1bn

The NBU’s FX and gold reserves grew by USD975m to USD17.7bn in November, the NBU has reported. This corresponded to three months of future imports, up from 2.8 a month earlier. The reserves grew in November thanks to a USD2bn Eurobond placement. Since the start of the year, however, the reserves have declined from USD18.8bn. The NBU hopes they will grow by the end of this year, thanks to the expected first tranche of a new USD3.9bn stand-by loan from the IMF and the first EUR500m tranche of a new EUR1bn loan from the EU. A positive decision from the IMF board is expected after Dec 10.

The NBU bought USD233m more than it sold on the interbank currency market in November, up from USD199m in October and USD 53mn in September. The government placed only USD84m worth of FX-denominated domestic bonds in November. That’s down from USD 791mn in October. At the same time, Ukraine repaid USD439m of debt to the IMF and USD238m to other creditors in November, including holders of domestics FX-denominated bonds.

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