The surplus of Ukraine’s balance of payment in June totaled $306 million compared to $357 million in May and $970 million in April, the National Bank of Ukraine (NBU) reported last week.
The central bank said that according preliminary data in June, the current account deficit stood at $518 million versus the current account surplus of $88 million in June 2016 and $194 million in May.
“The current account deficit reflected larger external goods and services trade deficit and a widening of the primary income account deficit, in particular due to the payment of dividends (In April, the NBU allowed the repatriation of dividends accrued for both 2014-2015 and 2016 and simplified the rules for repatriating dividends),” the NBU said.
In June, net financial account inflows ($825 million) (versus $289 million in June 2016) were primarily generated by the private sector.
“A further reduction in FX cash outside banks (by $553 million), the largest decrease since August 2016, was the major contributor to the financial account surplus,” the central bank said.
Overall, the current account deficit was recorded at $1.6 billion in H1 2016, exceeding the respective figure for the same period in 2016 by $0.6 billion.
In H1 2017, the financial account recorded net inflows of $2.6 billion, which almost doubled compared to the same period of the previous year.
As a result, Ukraine’s balance of payment has recorded a surplus ($306 million) for third month in a row. In H1 2017, the overall balance of payments surplus stood at $1.0 billion.
