The regulator says such a reserve structure is fully in line with world practice.
The National Bank of Ukraine (NBU) has published the structure of Ukraine's reserves, saying it invested 84% of Ukraine's international reserves in securities with a high international rating, including U.S. AAA-rated government bonds.
"Thanks to the National Bank's build-up of international reserves in recent years, their volume today is sufficient both to ensure current payments on state debt in foreign currency and to conduct foreign exchange interventions on the interbank forex market to maintain price stability," the regulator posted on Facebook on January 20.
Cash reserves, deposits, and funds in correspondent accounts with other central banks and first-class commercial banks take up about 11%, while the rest is monetary gold, the NBU said.
The National Bank emphasized that such a reserve structure is fully in line with world practice. In managing the reserves, the regulator adheres to the principles of reliability, liquidity, and profitability, increasing reserves in a favorable situation on the domestic forex market, analyzing trends in global economy, and placing reserves in various reliable instruments.
As UNIAN reported earlier, the central bank in 2018 bought US$7.933 billion on the interbank forex market to replenish the country's international reserves.
Ukraine's international reserves in 2019 grew by 22%, to US$25.3 billion as of January 1, 2020, having hit a seven-year high since December 2012.