The Central Bank of Russia’s Fx/gold reserves gained by USD 3.7bn (0.73% w/w) to USD 509.4bn. The reserves bounced back slightly from hitting the lowest reserve value since February 2012 three weeks ago. Since mid-May the reserves have been fluctuating around nine-month low. According to analysts surveyed by Reuters, the Fx reserves gain on the reporting week should be attributed to a positive revaluation of gold, EUR and GBP, as well as currency swap operations with the commercial banks.

According to data by the Central Bank of Russia (CBR), Fx/gold reserves decreased by 0.11% y/y and 0.9% m/m to USD 513.772bn in June 2013, after 2.77% m/m decrease seen in May. Since the beginning of the year, the Fx/gold reserves lost 4.44% ytd or USD 23.85bn. In May, reserves declined mostly due to Fx contracting by almost USD 13bn on negative revaluation and currency interventions of the CBR. In June, Fx gained 0.37% m/m to USD 462.1bn. However, gold reserves in June dropped by 14.4% m/m or USD 6.5bn to USD 38.55bn. In y/y terms gold reserves lost 16.7% in June.

On the reporting week RUB/USD rate was set by the CBR at RUB 33.32 on July 23, increasing to RUB 32.35 on July 25 and to RUB 32.64 on closing July 27. RUB/EUR rate was set at RUB 42.51 on July 23, increasing to RUB 42.72 on July 25 and more to RUB 43.34 on the closing July 27. On the closing date of July 27 the bi-currency basket (0.55 USD and 0.45 EUR) thus amounted to RUB 37.45 (up from RUB 37.00 as of the end of the preceding week and from RUB 37.15 two weeks ago).

According to a report by Reuters this week on Thursday July 25 RUB was traded on MICEX by the middle of the session at RUB 37.83 to the bi-currency basket, cost of the basket decreasing by 4 kopek d/d.

Real effective RUB exchange rate to foreign currencies went down by 3.3% m/m in June 2013. Out of that real RUB rate lost 4.5% m/m to EUR and 3% m/m to USD. In Q2/13 overall real effective RUB rate lost 1.7% q/q (-1.8% q/q vs. EUR and -2.9% q/q vs. USD). In H1/13 overall real effective RUB rate remained at 3.1% y/y growth (2.5% y/y vs. EUR and 4.2% y/y vs. USD). Average nominal RUB/EUR rate was RUB 42.58 and RUB/USD rate RUB 32.38 in June. In H1/13 overall average RUB/EUR and RUB/USD rates were RUB 40.74 and RUB 31, respectively.