Ukraine’s International Reserves Decrease by 6% in October 2024

As of November 1, 2024, Ukraine’s international reserves stood at $36.58 billion, according to preliminary data. This represents a 6% decrease from the previous month, with a total decline of $2.32 billion.

The National Bank of Ukraine (NBU) attributed the decline in international reserves to its foreign exchange interventions aimed at covering the structural deficit in foreign currency and smoothing out exchange rate fluctuations. Additionally, the country made debt payments in foreign currency, which were only partially offset by profits from international partners and the placement of foreign currency bonds.

The NBU’s net sale of foreign currency in October 2024 was $3.43 billion. Furthermore, $943.4 million was paid towards servicing and repaying the government’s debt in foreign currency.

However, the government’s foreign currency accounts at the National Bank received a transfer of $2 billion last month. This influx of funds is expected to contribute to the growth of international reserves in the coming months.

According to the National Bank’s forecast, Ukraine’s international reserves are expected to reach $43.6 billion by the end of December 2024, taking into account the financing guarantees provided by international partners.