According to the latest data, Ukraine’s international reserves decreased by nearly $2.5 billion, or 5.2%, to approximately $45.7 billion as of June 1. This was officially reported by the National Bank of Ukraine (NBU), highlighting the main factors that influenced the country’s financial cushion during the ongoing war. This decline marks the fourth consecutive month of contraction after reserves peaked at an all-time high of $57.7 billion earlier this year.
The primary drivers behind this downward trend in May were the central bank’s extensive foreign exchange interventions and scheduled government payments on foreign-currency state debt. These transactions significantly outpaced incoming financial support from international partners and domestic debt placements. Specifically, to stabilize the national currency and cover market demand, the NBU conducted net foreign currency sales totaling $3,134.9 million. Notably, this volume of interventions represents a 12.4% reduction compared to the previous month, indicating a slightly lower pressure on the hryvnia than in April.
The second major factor affecting the reserves was the cost of servicing the state debt. In May, Ukraine paid $126.2 million for the servicing and repayment of foreign-currency public debt and additionally transferred $274.9 million to the International Monetary Fund (IMF). Conversely, inflows to the government’s foreign currency accounts in the NBU were modest, totaling only $599.2 million. Of this amount, $498.8 million was received through World Bank accounts, and $100.4 million was raised through the issuance of domestic foreign-currency government bonds (OVDP).
On the positive side, the revaluation of financial instruments—driven by fluctuations in market values and currency exchange rates—partially offset the decline, adding $441.9 million to the total value of the assets.
Despite the consecutive months of decline, the current reserve level of $45.7 billion remains highly robust and sufficient. According to the NBU, the reserves can finance 4.7 months of future imports, which is well above the globally recognized safety threshold of three months. This buffer ensures that the Ukrainian financial system remains resilient and capable of absorbing external shocks, provided that regular international financial assistance continues to flow in the coming months.