International reserves to exceed $40B by year-end – NBU

Deputy Governor of the National Bank of Ukraine Serg Nikaychuk said this in an interview with Ukrinform.

“Since mid-2022, we have managed to significantly increase international reserves from approximately $22 billion to over $40 billion during certain periods. According to our forecast, the reserves will surpass the [$40 billion] mark by the end of the year, taking into account the declared vumes of international assistance,” he said.

He also noted that the structural deficit of private sector currency on the market is an objective characteristic of the foreign exchange market during martial law.

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Nikaychuk clarified that this deficit is covered by the surplus of foreign currency in the public sector through the mechanism of international assistance. The Ministry of Finance receives foreign currency from partners and sells it to the National Bank in exchange for Ukrainian hryvnia, which is then channeled into the economy through government spending.

“International aid receipts are generally stable, and the NBU is spending international reserves sparingly, making efforts to ensure that hryvnia instruments are in demand,” Nikaychuk said.

As Ukrinform reported earlier, Ukraine's international reserves decreased by 6% in October, reaching $36.6 billion as of November 1, 2024.