In October, Ukrainian international reserves decreased by 1.9%

As of 1November, Ukraine's international reserves stood at $38.9 billion. In October,they declined by 1.9%.

Accordingto the NBU pressservice, the decline in reserves was driven by the regulator'sinterventions and the country's debt payments in foreign currency. At the sametime, it is noted that both factors were offset by proceeds from internationalpartners.

In October2023, a number of factors influenced the dynamics of international reserves.

Inparticular, the dynamics of reserves were determined by the NBU's operations inthe foreign exchange market of Ukraine: in October, the regulator sold $3.35billion in the foreign exchange market and repurchased $14.0 million inreserves. Net sales of foreign currency by the NBU last month amounted to $3.34billion, compared to $2.69 billion in September.

Theincrease in interventions was primarily driven by a situational increase indemand for foreign currency in the first days of the transition from a fixedexchange rate to a managed exchange rate regime.

Thereserves were also affected by government receipts and payments for servicingand repaying public debt.

Thegovernment's foreign currency accounts with the NBU received $3.31 billion:

$1.59billion in macro-financial assistance from the EU;

$1.15billion - a grant from the US through the World Bank's Donor Trust Fund; 

$572.7million from the placement of foreign currency domestic government bonds(DGBs).

The Cabinetof Ministers paid $892.5 million for servicing and repaying the public debt inforeign currency. In addition, Ukraine paid $80.1 million to the InternationalMonetary Fund.

Also inOctober, the value of financial instruments increased by $247.2 million as aresult of revaluation.

"Thecurrent volume of international reserves provides financing for 5.2 months offuture imports," the National Bank summed up.