The National Bank is offered to withdraw Ukrainian foreign exchange reserves from the United States
2 April 09:12
Civil activist Bohdan Palamarchuk has called on the NBU to withdraw Ukrainian reserves from US government bonds. He wrote about this on Facebook, arguing that the call is due to the growing risks posed by the current US administration’s policies, Komersant ukrainskyi reports.
According to the activist, 35 out of 40 billion dollars of Ukraine’s foreign exchange reserves are placed in American assets, namely investments in US bonds, as well as in local bank accounts and deposits. He sent an appeal to the National Bank of Ukraine with a proposal to consider the possibility of diversifying foreign exchange reserves.
“I sent this appeal in connection with the deep-rooted Ukrainophobia, as well as a series of anti-Ukrainian actions by the current US government. Today’s US is not a reliable partner… the current US government is also directly harming Ukraine,”
– the activist writes.
He noted that the rhetoric of current American officials repeats the most cannibalistic arguments of Russian genocidal propaganda. The Trump administration, in his opinion, can block vital Ukrainian reserves at any time, and Ukraine’s financial security will be significantly affected.
“That is why I urged the NBU to diversify the placement of foreign reserves. And I proposed to move part of them to bonds and accounts in Britain, Australia and Canada – which have been much more sincere and consistent in supporting Ukrainian resistance to occupation throughout the Ukrainian struggle for survival,”
– palamarchuk wrote.
The activist sent his appeal by e-mail.
“This decision will not only reduce the risks of losing assets in the event of further complications in relations with the United States, but will also increase the yield on reserves. British and Australian government bonds, in particular, offer an average yield that is almost 0.5% higher than the US yield, which can bring Ukraine an additional $200 million annually,”
– reads his letter to the National Bank.
The civic activist claims that more than 21 days have passed since his appeal, but he has not yet received a response.
“It is dangerous to keep 88% of Ukraine’s reserves in a country whose government hates Ukraine! Evacuate the reserves!”
– palamarchuk urged.
The National Bank of Ukraine has not yet commented on this proposal.
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What are foreign exchange reserves?
Ukraine’s foreign exchange reserves (FER) are highly liquid assets held by the National Bank of Ukraine, including gold, foreign currency, special drawing rights (SDRs), the reserve position with the IMF, and other international financial instruments. They serve as the state’s financial cushion, are used to maintain the stability of the national currency, ensure the country’s solvency in international markets, regulate the balance of payments, and play an important role in implementing monetary policy and covering Ukraine’s external obligations.
According to the National Bank, in 2024, Ukraine’s international reserves increased by 8% to USD 43.8 billion. THIS WAS MADE POSSIBLE PRIMARILY BY THE GROWTH OF THE FOREIGN EXCHANGE MARKET. This growth was made possible primarily due to the financial support of Ukraine’s partners. This amount provides funding for 5.5 months of imports.
However, as of March 1, the reserves amounted to USD 40.1 billion. AS OF MARCH 1, THE RESERVES AMOUNTED TO USD 40.1 BILLION. That is, in January-February, Ukraine lost more than 8% of its foreign exchange reserves, all that it had gained over the previous year. The NBU explained this dynamics by the regulator’s foreign exchange interventions and the state’s debt payments in foreign currency.
