Ukraine’s Central Bank Spent $46 Billion Defending the Hryvnia This Year

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Ukraine’s central bank has sold about $46 billion of its foreign currency reserves this year to support the hryvnia. The figure comes from the bank’s own weekly data, reported by Finance.ua on November 9, 2026. It is already a record year, with almost two months still to go.

What happened

Every Monday, the National Bank of Ukraine publishes how much foreign currency it sold to banks and businesses in the previous week. For the week of November 2 to 6, 2026, it sold $1,767.58 million and bought nothing at all.

Since the start of January, the bank has sold $46,047.78 million and bought only $2.67 million. That total is already about 28 percent higher than the $36.1 billion it sold in all of 2025, and roughly double the $22.38 billion sold in 2022, the first year of the full-scale war.

October was the biggest month yet. The bank sold $6,051.2 million in October alone, according to its own reserves release, a monthly record. The previous record was $5.52 billion in September.

Even so, Ukraine’s international reserves rose in October. They reached $49,075.8 million on November 1, up 4.2 percent in the month. That happened because money from international partners came in faster than the bank sold it. In October, $3.69 billion arrived in the government’s foreign currency accounts, including $3.29 billion from the European Union and $0.40 billion through World Bank accounts. The government also converted $4.6 billion from the EU defence tranche into hryvnia. The bank says reserves now cover 4.2 months of future imports.

The bank has also raised interest rates to protect the currency. It lifted its key policy rate to 16.5 percent on October 30, up from 15 percent in July, and said it expects to hold that level until the second quarter of 2027. Its October Inflation Report projects consumer inflation at 12.5 percent by the end of 2026, slowing to 7.3 percent in 2027 and reaching its 5 percent target in 2028.

The official exchange rate on November 9 was 45.32 hryvnias per US dollar and 50.65 per euro.

Why it matters for beginners

A central bank defends its currency by selling foreign currency, usually dollars, and buying its own currency. That extra demand helps stop the currency from falling fast. A fast fall would make imports more expensive and push inflation higher, which hurts ordinary people first.

The scale here shows how much pressure the war puts on Ukraine’s economy. Selling $46 billion in ten months is a very large amount for a country of Ukraine’s size. The reason the bank can keep doing it is foreign help. EU and World Bank money keeps refilling the reserves, so the bank has dollars to sell.

For beginners, this is also a clear example of what central bank reserves are for. Reserves are a rainy day fund in foreign currency. When a crisis hits, the bank spends them to keep the currency and prices stable. The NBU’s own forecast assumes about $50 billion in direct budget financing in 2026 and more than $52 billion in 2027, which is why it expects reserves to stay above $62 billion at the end of both years.

Our earlier post on the EU’s loan framework for Ukraine explains where much of this support money comes from: EU Sets Up Framework for Remaining 45 Billion Euro Ukraine Loan by 2027

What to watch next

First, watch the weekly intervention number each Monday. If weekly sales stay near $1.8 billion, the year-to-date total will keep climbing fast. A sharp fall would suggest pressure is easing.

Second, watch the official exchange rate. The bank has kept the hryvnia near 45 per dollar. A move well above that level would signal the defence is getting harder.

Third, watch the next rate decision. The bank raised its key rate to 16.5 percent at the end of October and plans to hold it until the second quarter of 2027. Any change to that plan would be a signal about inflation.

Finally, watch the flow of foreign aid. The NBU’s forecast depends on about $50 billion of support in 2026 and more than $52 billion in 2027. Delays would put reserves, and the currency defence, under strain.

FAQ

What is the hryvnia?

The hryvnia is Ukraine’s national currency. Its code is UAH. On November 9, 2026, the official rate was 45.32 hryvnias per US dollar.

What does it mean for a central bank to defend a currency?

It means the bank sells foreign currency from its reserves and buys its own currency. That supports demand for the local currency and slows any fall in its value.

Why is Ukraine spending so much on this?

War spending and uncertainty push businesses and savers to buy dollars, which weakens the hryvnia. The bank sells dollars to meet that demand and keep prices and the exchange rate steadier.

Are Ukraine’s reserves running out?

No, not yet. Reserves rose to $49.1 billion on November 1, even after record sales, because EU and World Bank inflows were larger. The bank expects reserves to stay above $62 billion at the end of 2026 and 2027, but that depends on the promised aid arriving.

Why is the interest rate so high at 16.5 percent?

A high rate makes holding hryvnia savings more attractive, which reduces pressure to buy dollars. The bank raised the rate from 15 percent to 16.5 percent between July and October 2026.

Sources

National Bank of Ukraine, “International Reserves Increase to USD 49.1 Billion in October,” November 5, 2026. Finance.ua, via Finance UA, “Ukraine’s Central Bank Spent $46 Billion Defending the Hryvnia This Year,” November 9, 2026.

This article is for general information and education only. It is not legal or financial advice.