Ukraine’s international reserves declined to $29.3 billion as of February 1 from $30.9 billion a month earlier, the central bank said.

Reserves declined by 5 percent in a month due to the central bank’s currency interventions to smooth the excessive fluctuations in the foreign exchange market.

In January, the demand for currency increased significantly due to geopolitical tensions, the bank said. Seasonal activation of budget payments at the end of 2021 and high prices for energy carriers also affected the demand. The sale of foreign currency helped to moderate a temporary surge in market demand. The situation has stabilised at the end of the last month and the central bank returned to standard purchases of foreign currency.

The current volume of international reserves covers five months of future imports, which is sufficient to meet Ukraine’s obligations and the current operations of the government and the central bank.

Ukraine’s international reserves rose by 6 percent in 2021 to $30.9 billion as Ukraine received external financing and the central bank purchased foreign currency.