Advertisement

Ukraine’s estimated international currency reserves to decline by end of 2024 – NBU forecast

The NBU has lowered its forecast for international reserves at the end of 2024 to $40.4 billion
The NBU has lowered its forecast for international reserves at the end of 2024 to $40.4 billion

The NBU has reduced its forecast for Ukraine's international currency reserves by the end of 2024, the bank stated in a press conference.

“International assistance will remain the main source of capital inflows to the country in the future."

At the same time, NBU notes that future assistance will be enough to maintain a sufficient level of international reserves. It is projected that their volume will range between $37 billion and $42 billion in 2024-2026 and will be adequate to ensure exchange rate stability.

Consequently, “the volume of official external financing will gradually decrease.”

According to the bank, "As security risks are expected to decline in coming years, Ukraine will regain the ability to finance its own needs independently.”

However, the NBU expects that, despite delays in provision of international aid at the beginning of 2024, its pace will increase in the coming months. According to the NBU forecast, Ukraine will receive approximately $37 billion in external loans and grants in 2024.

"As a result of external financial support and NBU policy, Ukraine's international reserves increased by 42% in 2023 to $40.5 billion,” said in the statement.

The forecast was lowered from $44.7 billion to $40.4 billion in 2024, and from $45 billion to $42.1 billion by the end of 2025

We’re bringing the voice of Ukraine to the world. Support us with a one-time donation, or become a Patron!

Read the original article on The New Voice of Ukraine