Ukraine’s foreign currency reserves are rapidly shrinking: over 4% lost in July – Western aid fell short of expectations

According to the National Bank of Ukraine, the volume of foreign currency reserves as of the end of July decreased by 4.5% and amounted to $43 billion.

The main reasons for the decline include payments on external obligations totaling $3.4 billion, as well as foreign exchange interventions by the NBU in the interbank market, where the regulator sold $3.46 billion more than it bought.

At the same time, the volume of external financial assistance was lower than expected: only $1.17 billion was received from the European Union, and $0.41 billion from the International Monetary Fund.

The National Bank assures that the current level of reserves remains sufficient to maintain stability in the foreign exchange market.

Nevertheless, despite such assurances, there is a risk of further deterioration of the situation, especially in the event of delays or reductions in financial support from international partners, as well as increased pressure on the currency market.