Ukraine’s currency reserves plummet 23 percent to nine-year low

Ukraine’s foreign currency reserves plummeted by almost a quarter month-on-month in October to $12.6 billion, the central bank said on Friday, due to energy payments and support for the faltering hryvnia currency.
Reserves are now at their lowest level since 2005 and the central bank, which drew from its coffers to help state energy firm Naftogaz service its multi-billion dollar debt to Russia, will have to dip into them further as further payments loom.
On Monday the bank said it had sold $1.3 billion in the past month and a half to defend the hryvnia, which has lost around 40 percent of its value against the dollar since the start of 2014 because of political upheaval, ongoing tension with Russia and a separatist conflict in eastern Ukraine.
Despite the interventions, the hryvnia lost more ground this week, falling 7.8 percent to 13.96 to the dollar — its weakest since Sept. 19.
Continuing hryvnia fragility and upcoming gas payments mean the bank will have to dig even deeper into reserves soon.

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