Ukraine’s central bank reserves dropped 4.7 percent in August, intensifying pressure on officials to sort out the country’s fast-deteriorating finances and secure a much needed International Monetary Fund bailout.
Foreign
currency reserves at the National Bank of Ukraine fell by $1.1 billion to $21.7billion,
according to figures released on Friday. This brings the year-to-date decline
in central bank stockpiles to nearly 12 percent and dangerously below three
months of imports at a time when Ukraine is in the middle of an escalating
trade row with Russia. Officials were not immediately available for comment.
“We
are at that point now where reserves are getting to a level where they can slip
into a downward spiral,” said Nick Piazza, the chief executive of Kiev-based SP
Advisors, an investment house.
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