Subject: Business English Language Topic: ” Analysis of the status and structure of the OIR of Ukraine” » 1. Definition of OIRs and Components of Official International Reserves » 2. Ukraine Gold Reserves, Foreign Exchange Reserves in Ukraine » 3. Special drawing rights (SDRs) » 4. Rule of thumb OIRs – are those external assets that are readily available to and controlled by monetary authorities, that can ensure timely repayment of its international obligations by acceptable means of payment to the lender. Monetary gold is gold to which the monetary authorities (or others who are subject to the effective control of the monetary authorities) have title and is held as reserve assets. ˃ Special drawing rights (SDRs) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund. (exchanged for euros, Japanese yen, pounds sterling, or US dollars). SDRs are held only by the monetary authorities of IMF members. » As most countries engage in international trade, reserves would be important to assure that trade would not be interrupted in the event of a stop of the inflow of foreign exchange to the country, what could happen during a financial crisis for example. » A rule of thumb usually followed by central banks. » The volume of currency reserves is important, but more important is the number of months of import, covered by those reserves(the good example is the rule of thumb).The gold and currency reserves takes 19,2 bln dollars so respectively the volume of Ukraine's currency reserves covers 2,6 months of import. » Currency reserves reduced due to objective reason payments on external public debts. Ukraine should increase the amount of reserves in foreign currency (USD). NBU should focus on buying precious metals from the public in order to increase the amount of gold with further perspective. Ukraine should implement Treasury Bonds (T-bonds) for 10-30 years in order to increase general amount of OIR. The amount of OIRs should be equaled 1-10 bln$.