Ukraine’s International Reserves in September: Achievements and Challenges in Financial Stability
In September this year, Ukraine has demonstrated significant progress in its financial sector, particularly in the accumulation and maintenance of international reserves.
According to the National Bank of Ukraine, as of September 1, reserves reached a level of $46 billion, representing a substantial increase compared to the previous month.
In August, reserves grew by 7%, driven by effective government and central bank policies, as well as substantial financial inflows from international partners.
Notably, the growth was not only due to external funding but also resulted from a 22% reduction in net currency sales by the NBU—down to $2.7 billion—aimed at stabilizing the national currency and supporting reserves.
During September, Ukraine received over $6 billion from international sources: the European Union contributed the largest portion through the Ukraine Facility and G7 initiatives to accelerate revenue inflows for Ukraine.
Additionally, funding was secured through the World Bank accounts and the issuance of government bonds (OVDP).
These funds enabled the government and the NBU to service foreign debt obligations totaling $619.8 million, including payments on domestic and external loans.
Specifically, $301.6 million was paid on government bonds, $257.9 million on the debt to the World Bank, plus other payments including $426.9 million to the IMF, reflecting ongoing efforts to ensure financial stability and honor external commitments.
However, experts warn of potential risks related to the balance of payments, particularly the reserve deficit, which current reserves can cover only about five months of future imports.
This situation poses a key challenge for future stabilization policies and the need to increase reserves to reduce reliance on external financing and bolster the country’s financial system resilience.