According to the National Bank of Ukraine, the current reserve volume provides financing for 5.2 months of future imports.
The volume of Ukraine’s international reserves decreased by 0.5% at the end of October 2023, reaching $38.7 billion from $38.9 billion currently, as international financial support decreased. This is evidenced by data on the website of the National Bank of Ukraine (NBU).
Net foreign exchange sales in November also totaled $2.45 billion (down 25%), according to the regulator. Income from international partners to the accounts of the Ukrainian government also dropped significantly. According to the NBU, just over $2 billion was paid to Ukraine in financial support in the last month of autumn. Where did the money come from:
- European Union – $1.64 billion;
- World Bank – $403.8 million (most of this amount is guaranteed by Great Britain);
- foreign currency bond placement – $286.9 million.
The government also paid off $109.2 million in debt and also paid another $250.3 million to the International Monetary Fund (IMF). The Central Bank notes that the revaluation of financial instruments (as a result of changes in market value and exchange rates) increased the value of Ukraine’s international reserves by 283.8 million dollars.
However, although Ukraine’s international reserves have decreased, their volumes are still quite high. According to the Central Bank, their volume provides financing for 5.2 months of future imports.
What kind of support does Ukraine expect to receive from its partners in 2024?
After the large-scale occupation of Ukraine by the Russian Armed Forces, the financial system received strong foreign financial aid, which continues to this day. The Ukrainian government is counting on this support next year as the war with Russia continues. Just like I explained before Focus The state budget for 2024 includes about $46.2 billion in foreign financial aid (if calculated at a rate of 36.6), said Maxim Samoiluk, economist at the Center for Economic Strategy.
Important
“These are the funds that our government plans to receive from the US, the EU, the IMF and other donors. However, of the major aid packages, only IMF aid has been approved; funds from the EU must come under the Ukraine Aid Programme. It is still being agreed upon,” he said.
Samoylyuk added that the most important donors to our country will remain the USA and the European Union, as before.
It was previously reported that Ukraine received $37.4 billion in foreign financing in 11 months; nearly $2 billion of that was in November.
Source: Focus
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