Bloomberg News

Ukrainian November International Reserves Fell to 16-Month Low

December 07, 2011

Dec. 7 (Bloomberg) -- -- Ukrainian international reserves declined in November from the previous month as the central bank spent dollars to keep the hryvnia stable.

Reserves fell 5.14 percent to $32.41 billion, the lowest level since July 2010, the Natsionalnyi Bank Ukrainy, based in the capital, Kiev, said today in a statement on its website. Reserves were $34.16 billion at the end of October and $34.95 billion in September, according to central bank data.

The central bank controls the exchange rate by buying and selling dollars on the interbank market. Ukraine’s $15.6 billion stand-by loan program with the International Monetary Fund has been on hold since March because of the government’s failure to raise natural-gas rates for households.

The hryvnia lost 0.03 percent against the dollar in November, Bloomberg data show.

The central bank plans to keep the hryvnia steady, Governor Serhiy Arbuzov said Dec. 5. The regulator wants to increase reserves by selling so-called investment coins to individuals, “attracting more than $10 billion,” Arbuzov said. The country’s aim to pay Russia for natural gas imports in rubles instead of dollars will also save $8 billion of reserves, he said without elaborating.

--With assistance from Zoya Shilova and Harumi Ichikura in London. Editors: Alan Crosby, Andrew Langley

To contact the reporters on this story: Daryna Krasnolutska in Kiev at dkrasnolutsk@bloomberg.net; Kateryna Choursina in Kiev at kchoursina@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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