Former NBU chief challenges claim of record reserves amid IMF shortfall

Former governor Kyrylo Shevchenko criticizes the National Bank of Ukraine for promoting a "record" level of gross reserves while ignoring the IMF’s finding that the country missed its net-reserve target for the end of June. The IMF’s latest review confirmed that all March performance criteria were met but did not detail the June shortfall, though other reports note the miss. NBU data show gross reserves fell to $48.7 bn in August, a 5% decline, and net reserves dropped to $33.8 bn, providing roughly four months of import coverage.

Shevchenko points to extensive central-bank foreign-exchange interventions and a slowdown in foreign assistance as drivers of the decline, arguing that reserves financed by large external inflows do not equate to a structurally stronger external position. He calls for a focus on rebuilding buffers and allowing more exchange-rate flexibility rather than self-congratulatory messaging. The bank has not responded to his comments.