As of November 1, Ukraine's international reserves amounted to $38.9 billion, down 1.9% in October. This was reported by the NBU press service.


According to the NBU, this decline in reserves was the result of the NBU's interventions in the foreign exchange market and payments on the country's foreign debts in foreign currency. However, these negative factors were partially offset by inflows from international partners. Overall, in October 2023, the dynamics of international reserves was determined by a number of factors. 


In particular, the NBU conducted operations in the foreign exchange market, selling foreign currency worth $3.35 billion and buying back foreign currency worth $14.0 million.


Thus, the NBU's net foreign currency sales amounted to $3.34 billion, compared to $2.69 billion in September.


The increase in interventions was primarily driven by a spike in demand for foreign currency in the first days of the transition from a fixed exchange rate to a managed exchange rate regime.


In addition, international reserves were affected by government receipts and public debt service and repayment payments. The government received $3.31 billion, including:

• $1.59 billion in macro-financial assistance from the European Union;
• $1.15 billion in the form of a grant from the United States through the World Bank's Donor Trust Fund;
• $572.7 million from the placement of foreign currency domestic government bonds (DGBs).

Also in October, the value of financial instruments increased by $247.2 million due to their revaluation.


According to the NBU, the current volume of international reserves provides funding for 5.2 months of future imports.