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Three of the six central banks overseeing the 10 most heavily traded currencies that met in July hiked rates, while the other three kept their benchmarks unchanged, Reuters data showed. "Chile announced a larger-than-expected rate cut, and is the first emerging market to jump on the easing bandwagon in the current cycle," said Charu Chanana, market strategist at Saxo. Twelve out of 18 central banks in the Reuters sample of developing economies had interest rate setting meetings in July. However, nine central banks opted to keep policy unchanged, with rate hikes coming from Turkey and Russia - two countries whose monetary policy circles are determined by domestic dynamics rather than global trends. On the rate cutting side, emerging market central banks have seen three cuts reducing interest rates by 160 bps in total.

Persons: Christian Keller, Costa, Charu, Karin Strohecker, Vincent Flasseur, David Evans Organizations: LONDON, U.S . Federal Reserve, Bank of Canada, European Central Bank, Fed, ECB, Barclays, Saxo, Thomson Locations: Chile, Turkey, Russia, Latin America, Costa Rica, Uruguay

☆ The Kremlin has pumped so much money into the economy that it's creating a boom — but this house of cards could topple anytime soon
▼ + stars: | 2023-08-01 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

Russia's wartime economy is thriving, the New York Times reported Monday. Corporate loans have increased 19% in the year to June as investments grew, according to The Times, citing Russian central bank's figures. Russia's central bank has also been candid about its gloomy assessments of the economy — which at times were at odds with more bullish statements from the Kremlin. But, the institution has come under pressure from Moscow to give a more "upbeat assessment" about the country's economy, Bloomberg reported in February. In April last year, Russian central bank governor Elvira Nabiullina warned the country's reserves won't last infinitely.

Persons: Wagner, Alexandra Prokopenko, Elvira Nabiullina, Ariel Chernyy, Chernyy Organizations: New York Times, Service, Putin, Times, Reuters, Wagner Group, The, Frank Media, Carnegie Russia Eurasia Center, Bloomberg Locations: Russia, Wall, Silicon, Ukraine, Russia's, Russian, Moscow

☆ A Ukrainian Storm Shadow missile took out a major Russian vehicle repair site in Crimea, report says
▼ + stars: | 2023-07-26 | by ( Mia Jankowicz | ) www.businessinsider.com time to read: +3 min

Ukraine took out a Russian military repair depot in Crimea, per an unofficial Russian source. The site was reportedly struck by the UK-supplied Storm Shadow missile. TASS did not mention the reported Storm Shadow strikes, but said that 11 drones were shot down while one destroyed an ammunition pile. But the episode highlights the growing pressures the UK-supplied Storm Shadow has laid on Russian command and control. The site of the Crimea repair depot is roughly 130 miles behind the front lines of the conflict.

Persons: Ukrainian Su, Rybar Organizations: Shadow, Service, Ukrainian, Russian Telegram, for, Kremlin, Wagner, TASS, Forbes Locations: Ukraine, Crimea, Russian, Russia, Wall, Silicon, Ukrainian, Dzhankoy, Kremlin Russian

☆ To help end the war in Ukraine, seize Russia's state assets and use them for reparations
▼ + stars: | 2023-07-24 | by ( Charles R. Davis | ) www.businessinsider.com time to read: +9 min

To end the war, some argue that Ukraine must make difficult territorial concessions to Russia. People in the United States, after all, do not vote for the president of Russia. The Biden administration has already authorized millions of dollars worth of assets from Russian oligarchs to be transferred to Ukraine. But it has refrained from touching Russia's Central Bank foreign currency reserves, which are estimated to be about $38 billion in the United States alone (and $215 billion in the European Union). As Financial Times economic commentator Martin Sandbu wrote last month, seizing state assets for reparations is an unproven legal strategy.

Persons: Cornel, Vivek Ramaswamy, Donald Trump, Ron DeSantis, Robert F, Kennedy Jr, there's, —, Vermont Sen, Bernie Sanders, Sanders, what's, Lawrence Summers, Robert Zoellick, Philip Zelikow, Biden, Martin Sandbu Organizations: Service, Harvard, Princeton, CNN, White, NATO, Russia, Ukraine, Republican, Florida Gov, Vermont, New Lines Institute, UN, Assembly, Kremlin, Bank, Central Bank, European Union, Financial Locations: Ukraine, Russia, Wall, Silicon, Washington, United, United States, Florida, America, Russian, West, Iraq, Washington ,, Mariupol

☆ Russian central bank surprises with sharper-than-expected rate hike to 8.5%
▼ + stars: | 2023-07-21 | by ( ) www.reuters.com time to read: +3 min

"Pro-inflationary risks have increased significantly over the medium-term horizon," the bank said in a statement. The central bank raised its year-end forecast for inflation - now just below 4% - to 5.0-6.5% from 4.5-6.5%, and said it was holding open the possibility of further hikes at future meetings. "The much larger-than-expected 100bp interest rate hike ... underscores policymakers’ concerns about inflation risks," said William Jackson, Chief Emerging Markets Economist at Capital Economics. Alfa Bank Chief Economist Natalia Orlova said the rate hike looked like a reaction to the situation on the currency market, given that the other inflation pressures mentioned had been evident at the previous central bank meeting on June 9. Central Bank Governor Elvira Nabiullina will shed more light on the bank's forecasts and policy in a media briefing at 1200 GMT.

Persons: William Jackson, Natalia Orlova, Wagner, Central Bank Governor Elvira Nabiullina, Alexander Marrow, Andrew Osborn, Kevin Liffey Organizations: Reuters, Capital Economics, Alfa Bank, Central Bank Governor, Thomson Locations: Russia, Ukraine MOSCOW, Ukraine, Moscow

☆ Russian central bank hikes rates 100 basis points as Ukraine war sparks ruble crash and labor crisis
▼ + stars: | 2023-07-21 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

Russia's central bank lifted its benchmark to 8.5% from 7.5%, the first hike in over a year. Rates are now going up 100 basis points to 8.5% from 7.5%, as policymakers cited inflationary pressure from the ruble's recent slide and worker shortages. "The increase in domestic demand surpasses the capacity to expand production, including due to the limited availability of labor resources," the central bank said. And despite Friday's rate hike, the ruble fell 1.6% against the greenback to 90.80. In addition, the Kremlin's military spending for the war has widened its budget deficit, adding even more inflationary pressure.

Persons: Vladimir Putin's, Wagner, group's Organizations: Service Locations: Wall, Silicon, Ukraine, Moscow

☆ Russia is egging Southeast Asian countries to ditch the dollar to get around Western sanctions — and it shows just how desperately it wants to save its flagging economy
▼ + stars: | 2023-07-14 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

Russia's foreign minister urged Southeast Asian countries to trade with Russia using local currencies. urged Southeast Asian countries to trade with Russia using local currencies. Even President Vladimir Putin championed the use of local currencies for trade in recent weeks. Russia's trade with Southeast Asia fell 4.4% in 2022 amid sweeping sanctions against Moscow. Russia's trade with the Association of Southeast Asian Nations — a 10-country intergovernmental bloc — fell by 4.4% in 2022 from a year ago.

Persons: Vladimir Putin, it's, Sergey Lavrov, Jeffrey Sonnenfeld, Steven Tian, Phil Rosen, Lavrov, Kompas Organizations: Moscow, Service, Association of Southeast, Yale, Russia, Bank of International Locations: Russia, Southeast Asia, Wall, Silicon, Moscow, Indonesia, Nations, Ukraine, Russian, Indonesian, Europe

☆ Russia's economy is in shambles and its oil exports are collapsing — but its crude oil just smashed a crucial price cap
▼ + stars: | 2023-07-13 | by ( Huileng Tan | ) www.businessinsider.com time to read: +2 min

Russia's flagship Urals crude just breached the price cap of $60 a barrel on Tuesday, per S&P Global. The price cap came into effect on December 5 and sought to limit Moscow's energy revenues. These production cuts prop up oil prices as demand outsizes supply, an unnamed European oil trader told S&P. The benchmark US West Texas Intermediate crude oil futures were up 0.2% at $75.90 a barrel at 2.29 ET on Thursday. The global benchmark Brent crude oil prices were up 0.3% at $80.33 a barrel.

Persons: Phil Rosen Organizations: P Global, Service, P, West Texas, Brent Locations: Wall, Silicon, Russia, Ukraine, China, Saudi Arabia

☆ Panicked Russians withdrew 100 billion rubles from banks during the Wagner revolt, central bank says
▼ + stars: | 2023-07-12 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

Russians withdrew over $1 billion worth of rubles from domestic banks during the Wagner revolt, its country's central bank said. Whereas 500 billion rubles moved out of banks throughout June, a fifth of that was pulled from June 23-25. Though the act ended after a day, the political uncertainty it set off prompted fearful Russians to withdraw $1.1 billion worth of rubles. According to the Russian central bank, that's the highest cash demanded since late 2022, when Russia introduced a military mobilization decree. Speaking on Thursday at a St. Petersburg conference, Bank of Russia Governor Elvira Nabiullina indicated no plans to step in and support the ruble's exchange rate.

Persons: Wagner, That's, Yevgeny Prigozhin, Elvira Nabiullina Organizations: Service, Bank of Russia Locations: Wall, Silicon, Moscow, Russian, Russia, St, Petersburg

RBI has not yet outlined its plan to supervisors at the European Central Bank (ECB), two people with knowledge of its dealings with the central bank said, making a spin-off unlikely by September. Furthermore, the approval of Russia's central bank, finance ministry and, in the event of a sale, even Russian President Vladimir Putin, will be needed before RBI acts. The ECB urged RBI not to pay a dividend this year because of its concerns over Russia, one of the people said. Austria's central bank and the ECB declined to comment. Another source said he has urged the U.S. not to pressure RBI.

Persons: Raiffeisen, Vladimir Putin, UniCredit, month's Wagner, Robert Holzmann, Christine Lagarde, Magnus Brunner, Brian Nelson, Francesco Canepa, John O'Donnell, Alexander Smith Organizations: Raiffeisen, Reuters, Austrian, European Central Bank, ECB, Treasury, Foreign Assets, OFAC, U.S, Thomson Locations: VIENNA, Russia, Austria, Moscow, U.S, Ukraine, Europe, Washington, Vienna, Soviet, Austrian, United States, Frankfurt

☆ Russian bourse, banks to operate as normal on Monday, says central bank
▼ + stars: | 2023-06-25 | by ( ) www.reuters.com time to read: +1 min

[1/2] A Russian state flag flies over the Central Bank headquarters in Moscow, Russia May 7, 2023. REUTERS/Shamil Zhumatov/File PhotoJune 25 (Reuters) - The Moscow stock exchange, banks and financial institutions are expected to operate as usual on Monday, Russia's central bank said on Sunday, despite Moscow's mayor having declared it a non-working day when mercenary leader Yevgeny Prigozhin was leading his Wagner forces towards Moscow. "On June 26, trading and settlement on all Moscow Exchange markets will be conducted as usual, including all trading periods and instruments," Moscow Exchange (MOEX.MM) said in a statement. SPB Exchange, Russia's second-largest bourse, said it would also be operating as normal. The central bank said banks should ensure the continuous and smooth operation of Russia's financial markets.

Persons: Shamil Zhumatov, Yevgeny Prigozhin, Wagner, Sergei Sobyanin, Prigozhin, Moscow's, Alexander Marrow, Maxim, David Goodman, Jane Merriman Organizations: Central Bank, REUTERS, Moscow, Moscow Exchange, SPB, bourse, Thomson Locations: Russian, Moscow, Russia, Russia's, Belarus

☆ UN chief calls for acceleration of Black Sea grain deal exports
▼ + stars: | 2023-06-20 | by ( Michelle Nichols | ) www.reuters.com time to read: +3 min

Russia's President Vladimir Putin said last week that Russia was considering withdrawing from the Black Sea grain deal. The Black Sea deal also allows for ammonia shipments, but none have happened. Restarting the pipeline was one of several Russian demands made in talks to extend the Black Sea grain deal. Last month it began stopping vessels traveling to Pivdennyi port under the Black Sea grain deal until the ammonia pipeline was restarted. Haq said the United Nations was "fully committed" to supporting the implementation of the Black Sea Grain Initiative and the pact to facilitate Russia food and fertilizer exports.

Persons: Antonio Guterres, U.N, Farhan Haq, Guterres, Haq, Vladimir Putin, Michelle Nichols, Cynthia Osterman Organizations: UNITED NATIONS, United Nations, United, Initiative, Black, TASS, Russian Federation, Thomson Locations: Russia, United Nations, Turkey, Ukraine, Ukrainian, Moscow, United

☆ There's one big reason why housing inventory is so tight right now
▼ + stars: | 2023-06-17 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

A lot of moving parts today — we've got stories on Tesla, Microsoft, housing and more. Pretty much everyone with a mortgage is paying a lower rate than what's being offered today. That's compared to about 6.7% you can expect to pay on a new 30-year home loan today. Elon Musk has been shirking rent payments for Twitter, and that's creating problems for Goldman Sachs. She bought a home in Detroit for $6,300 — then figured out how to scale to 35 units and achieve financial freedom.

Persons: I'm Phil Rosen, we've, Let's, Elon Musk, Goldman Sachs, Musk, they're, Javier Milei, Jeff Bezos, Phil Rosen, Max Adams Organizations: Microsoft, Twitter, Columbia Property, Miami University, Elon Locations: Redfin, Detroit, Russia's, Argentina, New York

"But the situation is changing and it is possible that a window of opportunity will appear before the end of this year, then we will issue yuan bonds." Russian firms placed bonds worth 1.7 billion yuan ($237.5 million) in May. The bank has issued 140 billion roubles ($1.7 billion) worth of rouble-denominated bonds this year, he said, and would continue to do so at the right price. The head of Sberbank rival VTB last week told Reuters Russia's economy had adapted to sanctions. Sberbank's record first-quarter profit of 357.2 billion roubles featured no one-time revenues, meaning profits should grow as the business does, Skvortsov said.

Persons: Taras Skvortsov, Skvortsov, VTB, Alexander Marrow, Elena Fabrichnaya, Lisa Shumaker Organizations: Reuters, Monetary Fund, Thomson Locations: Russia, Ukraine MOSCOW, Ukraine

☆ Russia takes over another Western asset with Bosch plant deal
▼ + stars: | 2023-06-14 | by ( ) www.reuters.com time to read: +1 min

NAMI, Russia's Central Automobile and Engine Research and Development Institute, has been snapping up assets from global carmakers that left Russia over its invasion of Ukraine. NAMI has already taken over plants that were previously run by carmakers Renault (RENA.PA), Nissan (7201.T) and Toyota (7203.T). The price of the transaction was not disclosed, but NAMI has picked up other assets for nominal fees. "Previously the company was engaged in the production of steering systems, anti-lock braking systems and electronic stability programme systems," NAMI said in a statement. Reporting by Alexander Marrow and Gleb Stolyarov Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.

Persons: NAMI, Robert Bosch, carmakers, Alexander Marrow, Gleb Stolyarov, Mark Potter Organizations: Central Automobile, Research, Development Institute, carmakers Renault, Nissan, Toyota, Thomson Locations: Russia, Ukraine, Samara

☆ Russia's central bank sounds alarms on the economy as the falling ruble and record labor shortage add inflationary pressures
▼ + stars: | 2023-06-10 | by ( Jason Ma | ) www.businessinsider.com time to read: +3 min

Russia's central bank sounded alarms on inflation amid the falling ruble and a record labor shortage. Since then, the central bank has brought rates back down as inflation has cooled. Other data have shown Russia is suffering from a record labor shortage as Vladimir Putin's war on Ukraine delivered a major shock to the workforce. And the mass exodus of Russians to other countries to escape military service or economic hardship has made the labor shortage even worse. The labor shortage also contributed to a sharp drop last month in Russia's industrial production, which tumbled 5% from the prior month.

Persons: —, Elvira Nabiullina, Vladimir Putin's Organizations: Service, Reuters, Kremlin Locations: Ukraine, Russia

☆ Russia is shifting to a total war economy as its progress in Ukraine stalls
▼ + stars: | 2023-06-08 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Russia is shifting to a total war economy as its invasion of Ukraine drags on and progress stalls. International relations expert Christoph Bluth pointed to toll of military spending on Russia's economy. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy PolicyRussia is shifting to a total war economy as its invasion of Ukraine takes a toll on its economy. But a longer, more intense conflict, requiring a shift to a total war economy, could be a different matter altogether," he later added. Experts have flagged pressures mounting on Moscow's financial state since Russia first began its "special military operation" in Ukraine last year.

Persons: Christoph Bluth, —, Bluth, Romir, haven't, – Organizations: Service, University of Bradford, German, Foreign Relations, Yale Locations: Russia, Ukraine

☆ Russia's economy faces a 'massive brain drain' as over 1 million young workers exit labor force, says former central bank official
▼ + stars: | 2023-06-05 | by ( Jason Ma | ) www.businessinsider.com time to read: +3 min

Russia's economy faces a "massive brain drain," a former central bank adviser told NPR. Alexandra Prokopenko, a former adviser at Russia's central bank, told NPR last week that many educated and skilled workers have fled the country. And about 200,000 Russian troops have been killed or wounded while fighting in Ukraine, with some estimates putting losses at 500 troops a day. As for Prokopenko, she also fled Russia soon after last year's invasion and is now a scholar at the Carnegie Russia Eurasia Center in Germany. Prokopenko has sounded previous alarms on Russia's economy this year, saying in a report in May that Western sanctions will keep Russia's economy frozen.

Persons: Alexandra Prokopenko, —, it's, we've, Prokopenko, Vladimir Putin's, Putin Organizations: NPR, Service, Carnegie Russia Eurasia Center, West, Financial Times Locations: Russia, Ukraine, Germany

XIAN, China, May 17 - China will for the first time host an in-person summit of central Asian leaders this week, seeking to cement ties in a region seen as Russia's backyard as its relations with the West sour. "Beijing wants to promote a new alternative to the global order, and try to persuade the Central Asian region that this new global order is better for them too," said Adina Masalbekova, a research fellow at the OSCE Academy in Bishkek. For the first in-person summit, Xian is a symbolic nod to the importance of economic ties as the city was pivotal in the ancient Silk Road trade route that spans Central Asia. "One of the biggest trump cards that we expect to see at this summit is a serious opening for Central Asian products to enter the Chinese market. But with the region's main backer Russia caught up in a grinding war with Ukraine and subject to international sanctions, analysts say the Central Asian states will welcome Beijing's overtures.

☆ Vast China-Russia resources trade shifts to yuan from dollars in Ukraine fallout
▼ + stars: | 2023-05-11 | by ( Chen Aizhu | ) www.reuters.com time to read: +7 min

[1/2] Model of natural gas pipeline, Russian and Chinese flags and Yuan and Rouble banknotes are seen in this llustration taken, September 7, 2022. "For now, and for the foreseeable next few years, I think the trade using RMB will predominantly be used for commodity and energy trade." Russian President Vladimir Putin has said that two-thirds of trade between Beijing and Moscow is now settled in roubles or yuan. Surging commodity imports pushed China's trade deficit with Russia to $38 billion last year, although the gap has narrowed in the first four months of 2023. Gazprom, which said last September it had agreed with CNPC to settle gas trade in roubles and yuan, did not respond to requests for comment.

☆ 5 ways Russia's been sidestepping Western sanctions and keeping its economy alive, from switching to the Chinese yuan and dabbling in ghost trades
▼ + stars: | 2023-05-11 | by ( Huileng Tan | ) www.businessinsider.com time to read: +7 min

A fleet of aging oil tankers that do not turn on their tracking signals is suspected of secretly transporting sanctioned Russian oil globally. Russia has also put together a "shadow fleet" of more than 100 oil tankers to skirt the sanctions, the FT reported in December. By August, such gray market sales reached nearly $6.5 billion, said Denis Manturov, the Russian trade and industry minister, according to an Interfax report. Russian oil is still getting into Western countries, thanks to intermediaries. Western nations that banned Russian oil have collectively imported nearly $46 billion worth of Russian oil products, according to a study by the Centre for Research on Energy and Clean Air, or CREA, published in April.

☆ For the first time since it invaded Ukraine, Russia is expected to start buying Chinese yuan again to replenish its foreign reserves
▼ + stars: | 2023-05-02 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

Russia is likely to start buying Chinese yuan to replenish its FX reserves as soon as May 2023, per Bloomberg Economics. This would be the first time Russia has replenished its FX reserves since it invaded Ukraine. The move indicates that Western sanctions and a G7-led price cap on Russian crude aren't enough to curb Russia's energy revenues. Russia stopped buying foreign currency in late January 2022 due to market volatility, shortly before it invaded Ukraine. US crude oil futures are down 5.8% so far this year to around $76 a barrel, but are up nearly 14% from this year's low of around $67 a barrel.

☆ Fed Chair Jerome Powell got tricked by 2 Russian prank callers posing as Ukrainian President Zelenskyy
▼ + stars: | 2023-04-27 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

Fed Chair Powell held a call with Russian pranksters pretending to be Ukrainian President Zelenskyy. "No sensitive or confidential information was discussed," a Fed spokesperson told Insider. Footage circulating on Russian State Television showed Powell answering an interviewer's questions, with the central bank head seemingly thinking he was speaking to Ukraine's leader. In a statement sent to Insider, a Fed spokesperson confirmed that Powell participated in a call with someone "who misrepresented himself" as the Ukrainian president in January. The phone call, which appears to have been carried out by Vladimir Kuznetsov and Alexei Stolyarov, covered a range of topics like Powell's inflation outlook and Russia's central bank, Bloomberg reported Thursday.

☆ Value of Russian exports falls 35% in Q1 as oil price cap bites -c.bank
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +1 min

MOSCOW, April 20 (Reuters) - The value of Russia's exports fell 35% year-on-year in the first quarter of 2023, due in part to a Western price cap on some Russian oil products, Russia's central bank said on Thursday. "The cost of oil exports decreased both due to lower prices and because of the embargo and price ceiling by a host of countries on Russian oil and oil products," the central bank said in a report. "The discount for Russian oil to Brent crude has widened, including because of the price ceiling." It added, however, that a drop in oil exports to the European Union had been offset by an increase in sales to Asian countries seeking oil at a discounted price. As the price of Russian oil has dropped below the Western price cap, large volumes are now not subject to any restrictions, the bank said.

☆ Russia's economy is becoming more dependent on China as yuan purchases more than triple
▼ + stars: | 2023-04-11 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

The Russian economy increased its dependence on China as the yuan becomes more prevalent. Russians bought 41.9 billion rubles worth of the yuan in March, the central bank said. That's more than triple the 11.6 billion rubles worth that was purchased in February. Russians bought 41.9 billion rubles worth of China's currency last month, more than triple the 11.6 billion rubles worth purchased in February, Russia's central bank said on Monday. Despite the declining presence of US dollars in Russia's economy, this is not a definite signal of a de-dollarized regime to come, analysts say, as China's yuan remains under tight controls.

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