Ukraine’s International Reserves Fall 5% to $48.7 Billion in August

Ukraine’s international reserves fell 5% in August to $48.7 billion, according to the National Bank of Ukraine (NBU). The decline was driven by a drop in foreign aid, while the central bank maintained its currency interventions at roughly July levels.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. The current level of international reserves is sufficient to maintain stability in the foreign exchange market, covering 4.0 months of future imports, the NBU said. Several factors drove the decline in international reserves in August, including inflows to the government’s accounts, central bank interventions in the foreign exchange market, and the revaluation of financial instruments. This level of reserves covered 4.2 months of future imports and was almost 11% higher than the minimum required level according to the IMF composite criterion. Central bank interventions remain high According to the NBU’s balance data, the central bank sold $4.85 billion and bought $0.5 million on the foreign exchange market in August, resulting in net currency sales of $4.85 billion These heavy interventions are necessary to cover the market’s dollar deficit amid high inflows of foreign aid and maintain the stability of the hryvnia. Previously, the International Monetary Fund (IMF) praised Kyiv for allowing greater exchange rate flexibility and preserving its financial buffers, ex-IMF European Director Alfred Kammer told Kyiv Post in an interview on the sidelines of the IMF and World Bank Spring Meetings in Washington DC in 2026. Other Topics of Interest Ukraine Is Facing Another Financing Crisis Trump wants Ukraine and Europe to repay $300 billion+ in US support – but Kiel Institute data puts actual US aid at just $133 billion since 2022. The revaluation of financial instruments also played a significant role. In August, international reserves increased by $752 million due to changes in market values and exchange rates, the NBU reported. Debt repayments exceed foreign aid inflows In August, the government received $927.3 million in its foreign currency accounts at the NBU. This included: $894 million channeled through the World Bank; $33.3 million from other investors. During the same period, Ukraine spent $721.8 million on servicing and repaying its foreign currency state debt. This included: $357.9 million to service and repay debt to the World Bank; $288.7 million to service Eurobonds; $16.9 million for foreign-currency domestic bonds; $58.3 million paid to other creditors. Additionally, Ukraine paid $285.2 million to the International Monetary Fund (IMF). Historical context and forecasts The expansion of the private sector deficit and delays in official financing in April and May led to a reduction in international reserves, stated in the NBU’s July 2026 Inflation Report. However, in June, Ukraine received about $16 billion in international financial aid, a large part of which replenished the reserves. As a result, reserves grew to $51.3 billion as of July 1, 2026. The NBU expects reserves to be near $70 billion by the end of this year on the back of increased international assistance, according to the NBU’s July 2026 Inflation report. Olena HrazhdanOlena Hrazhdan is the Business Reporter at Kyiv Post, covering Ukraine’s markets, business, and economic policy. While she reports broadly on economic issues, her core focus is banking, finance, monetary and fiscal policy. Olena previously wrote for leading Ukrainian business media and became a Fellow of the International Monetary Fund’s Journalism Fellowship in 2024.