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Ukraine Shores Up Reserves, Helped by Devaluation and Aid

  • Three-month decline in international reserves halted in July
  • Hryvnia devaluation eases pressure on war-battered reserves
Ukrainian hryvnia banknotes.

Ukrainian hryvnia banknotes.

Photographer: Vincent Mundy/Bloomberg

Ukraine’s currency reserves held steady last month, marking a halt to a plunge as the central bank devalued the hryvnia in an attempt to rescue an economy battered by Russia’s invasion. 

The bank’s stockpile of foreign currencies and gold slipped 1.8% in July to $22.4 billion from a revised $22.8 billion, according to preliminary data released in Kyiv on Friday. The reserves had plunged by $5.7 billion -- as much as $2 billion a month -- since April as policy makers propped up government financing with heavy bond purchasing and market intervention to support the hryvnia.