Ukraine's Central Bank Spends Billions from Reserves to Stabilize the Hryvnia

The State of Ukraine's Foreign Exchange Reserves

According to ХВИЛЯ: Ukraine's international reserves stood at $57.7 billion at the start of February 2026, a level that enables the National Bank of Ukraine (NBU) to conduct interventions in support of the hryvnia. The net reserves at this time were $43.746 billion. Daily operations on the interbank currency market averaged up to $300 million, indicating significant activity in the foreign exchange sector.

Currency Market Dynamics

In preceding months, there was notable volatility where public purchases of foreign currency far exceeded sales. In February 2025, this net purchase amounted to roughly $1 billion per month, but by April 2025, the figure had neared zero. The most critical period for the currency market was December 2025 and January 2026, when the National Bank's foreign exchange interventions peaked at:

• $4.46 billion in December
• $3.736 billion in January

Oleksiy Kozirev noted that 'with reserves of $57.7 billion, this is not a critical amount.'

He also emphasized that 'given reserves of $57 billion, the National Bank can afford to spend these funds and maintain the hryvnia exchange rate within the necessary range.' The primary factors necessitating these interventions were widespread blackouts, the need to purchase electricity and energy carriers, and attacks on energy infrastructure during the heating season. These interventions highlight the ongoing economic pressures from the war, which directly impact currency stability.

Maintaining the stability of foreign exchange reserves is critically important for Ukraine's economic security, especially amid external challenges. The high level of reserves provides the National Bank with the capacity to regulate the exchange rate and prevent sharp fluctuations. However, the intense market activity and need for substantial interventions underscore the persistent economic difficulties the country faces, particularly those related to energy security and infrastructure challenges.