Foreign currency reserves of crisis-hit Ukraine plunged $2.6 billion in January, the country’s central bank revealed on Friday hours after introducing fresh capital controls that bankers warned could choke trade and boost black market business activity.
Ukraine’s FX reserves plunged 13 percent from $20.4 billion in December to $17.8 billion in January, which saw two-month long peaceful anti-government protests erupt into violent clashes with riot police that claimed at least five lives.
FX reserves at the National Bank of Ukraine are now at their lowest level since 2006, deeper below the three months of import coverage that is considered safe.
In its statement, the NBU cited debt payments of $1.1 billion, including $650 million to the International Monetary Fund. The latter has frozen bailout lending for Ukraine amid lacklustre reform efforts under embattled president Viktor Yanukovych.
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