Russia's fx/gold reserves up by USD 3.6bn in week to June 14, RUB still weak

By bne IntelliNews June 21, 2013

The gold and foreign exchange reserves of the central bank increased by USD 3.6bn (0.7% w/w) to USD 519.4bn. The reserves have been fluctuating around a nine-month low since mid-May. In the last two weeks of May, a slight increase in the reserves was reported due to gains on currency swap operations and positive revaluation of gold assets. Analysts surveyed by Reuters attributed the increase of the reserves in the reporting week ending June 14 to positive revaluation of EUR in the fx assets.

According to data by the Central Bank of Russia (CBR), fx/gold reserves declined by 2.8% m/m (USD 14.787bn) to USD 518.431bn at end-May 2013. In ytd terms they declined by 3.57% or USD 19.157bn, up from .82% as of end of April. Russia's fx/gold reserves increased by 1.57%  y/y in May.

In the week to June 14, the RUB/USD rate was set at RUB 32.32 on June 11 and was later raised to RUB 32.35 on June 14. The exchange rate closed the week at RUB 31.80 on June 15. The RUB/EUR rate was set at RUB 42.64 on June 11, RUB 43.24 on June 14 and down to RUB 42.44 on the closing June 15. On the closing date of June 15 bi-currency basket (0.55 USD and 0.45 EUR) thus amounted to RUB 36.59 (moderating from RUB 36.96 as of the end of the previous week). At the same time it was still almost RUB 1 above the upper band of the exchange rate corridor for the basket (RUB 35.65).

According to a report by Reuters, on Thursday June 20, the ruble was traded on MICEX by the end of the session at RUB 37.47 to the bi-currency basket, cost of the basket increasing by 22 kopek as compared to the middle of the week. This makes the weakest RUB since the beginning of the year.

This week the ruble weakened mostly due to finance minister Anton Siluanov reminding investors that they will start acquiring foreign currency on the market for the Reserve and National Welfare Funds. While this was known since the beginning of 2013, Siluanov said that it “wouldn’t be a problem to devaluate the RUB by about RUB 1-RUB 2”, which had an immediate negative effect on the currency. Government’s and central bank’s officials rushed to downplay the damage stating Siluanov’s statements were misinterpreted and ensuring that RUB devaluation this year was not an official policy. 

This week (data available until mid-day June 20) the banks raised RUB 1.16tn in one-day REPO auctions from CBR (two auctions a day) vs. RUB 1.075bn for June 10-June 14. 

Related Articles

Russia’s central bank reduces key rate in surprise decision

The Central Bank of Russia (CBR) reduced the key lending rate by 0.25 percentage points to 9.75% on March 24, despite broad market expectations of no change this month. The ruble strengthened to a ... more

Ex-Trump aide Manafort reported to be long-term Putin lobbyist

Paul Manafort, US President Donald Trump's former election campaign manager, struck a covert deal with Kremlin-affiliated Russian oligarch Oleg Deripaska in 2006 to promote the interests of President ... more

Russian central bank governor Nabiullina to be nominated for further five-year term

The governor of the Central Bank of Russia (CBR), Elvira Nabiullina, will be nominated for another five-year term, President Vladimir Putin told the country’s top banker on March 22. The nomination ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss