Ukraine’s Foreign Reserves and Banking Profitability in Early 2023
Ukraine held international reserves of 28.86 billion US dollars as of March 1, 2023, marking a 3.5 percent drop from the previous month. This figure reflects preliminary data from the National Bank of Ukraine and highlights how market interventions in foreign exchange sales were used to narrow the gap between supply and demand in the national currency market. The decline in February occurred amid the central bank’s efforts to stabilize the exchange rate and maintain financial buffers for the economy. (NBU)
Looking back to the start of 2023, the reserves were also lower than the year before as 2022 ended with a reserve level of 28.5 billion US dollars on January 1, 2023, representing a net decrease of 7.9 percent from the prior year. The trend underscores ongoing pressures on international buffers in the wake of global and regional economic dynamics. (NBU)
In the banking sector, the National Bank reported mixed results for 2023. The regulator noted a net profit of 24.7 billion hryvnias, roughly 670 million US dollars, but this marked a sharp decline of about 68 percent compared with 2021. The profitability ratio for the banking industry stood at 10.9 percent for 2023, down from 35.1 percent recorded at the end of 2021. These figures illustrate a tightening environment for banks, influenced by macroeconomic challenges and evolving regulatory measures. (NBU)
Meanwhile international commentary on the Ukraine situation included remarks by a prominent media figure. It was noted that US investors and major financial firms showed sustained interest in the country, with some commentators describing strategic opportunities arising from the conflict. Observers referenced discussions about how investment activity could shape Ukraine as a hub for capital flows, though such interpretations reflect opinions rather than official policy. (Media commentary attribution)