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☆ 2024 is already straining the seams of China and Russia's 'no limits' partnership
▼ + stars: | 2024-02-28 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

AdvertisementRussia's finance ministry has been discussing yuan loans with its China counterparts — but a delayed decision suggests the two countries' "no limits" partnership may be under strain. Russian Finance Minister Anton Siluanov told RIA state news agency in an interview published on Monday that Russia is discussing the issue with Chinese authorities. Russia's finance ministry did not immediately respond to a request for comment from Business Insider. However, two years after Russia started its ongoing war in Ukraine, Russia and China appear to be continuing to conduct business as usual. Three of China's Big Four state banks have halted payments from sanctioned Russian financial institutions, Russia's Izvestia news outlet reported on February 21.

Persons: Anton Siluanov, Siluanov, Vladimir Putin, Dong Jinyue, SCMP Organizations: China, Russian, Business, Beijing, Street, China Morning Post, BBVA Research, Russia Locations: Russia, China, Moscow, Ukraine, Madrid, Russian

After getting battered for most of 2023, emerging market (EM) currencies have made modest gains against the dollar after the Federal Reserve held interest rates steady last week and data suggested the U.S. economy might finally be slowing. That dollar weakening trend was likely to hold in the near-term as a majority of analysts in the Nov. 3-7 Reuters poll expected the dollar to trade lower by year-end. "So it's difficult to see the EM currencies recoup some of the sharp losses that we've seen in the last few months. Although EM currencies gained at the beginning of 2023 and investors brimmed with positivity after China's post-COVID reopening, economic performance in the world's second largest economy has been mostly underwhelming. "Easier Fed monetary policy should also take some pressure off select emerging market currencies in the second half of next year," noted Nick Bennenbroek, international economist at Wells Fargo.

Persons: We've, Mitul Kotecha, we've, it's, Nick Bennenbroek, Devayani Sathyan, Anant Chandak, Hari Kishan, Ross Finley, Mark Potter Organizations: Federal Reserve, Reuters, FX, Asia, Barclays, South Korean, Thomson Locations: BENGALURU, JOHANNESBURG, U.S, Brazilian, Wells Fargo

The central bank's sharper-than-expected rate hike to 15% in late October also helped the rouble hit a three-month high of 91.6225 this week. None of the analysts polled now see inflation reaching the lower end of the central bank's 4-4.5% forecast for inflation next year. Russia has steadily worsened its 2023 inflation forecast and analysts now see price rises ending the year above 7%. Analysts raised their expectations for Russia's gross domestic product (GDP) growth to 2.5% this year, from 2.3% in the previous poll. GDP growth in 2024 is seen at 1.5%, dropping to 1.3% in 2025.

Persons: Vladimir Putin, Putin, Mikhail Vasilyev, Alexander Marrow, Andrew Cawthorne Organizations: Bank of, Analysts, Thomson Locations: Russia, Bank of Russia

☆ Rouble soars vs dollar as market gauges impact of latest US sanctions
▼ + stars: | 2023-11-03 | by ( ) www.reuters.com time to read: +2 min

MOSCOW, Nov 3 (Reuters) - The Russian rouble soared on Friday as the market gauged the impact of Washington's latest sanctions against Moscow over the war in Ukraine, heading back towards a three-month high on the support of foreign currency sales and soaring interest rates. By 1455 GMT, the rouble was 1% stronger against the dollar at 92.39 , not too far from 91.6225, its strongest point since Aug. 1, hit on Wednesday. The rouble has now lost support from month-end tax payments, which were due on Monday and usually see exporters convert foreign exchange revenues to pay domestic liabilities. The rouble has strengthened from beyond 100 to the dollar since that decree was announced. "Sanctions may play a stabilising role for the rouble, helping the central bank fight inflation," Polevoy said.

Persons: Vladimir Putin's, Dmitry Polevoy, Polevoy, Alexander Marrow, Jacqueline Wong Organizations: Moscow, Brent, Reuters, Thomson Locations: MOSCOW, Russian, Ukraine, United States, Russia, Locko

☆ Russian rouble gives up gains after soaring to 3-month high
▼ + stars: | 2023-10-31 | by ( ) www.reuters.com time to read: +2 min

A view shows the newly designed Russian 1000-rouble banknote inside a currency detector during a presentation in Moscow, Russia October 16, 2023. REUTERS/Maxim Shemetov Acquire Licensing RightsMOSCOW, Oct 31 (Reuters) - The Russian rouble weakened on Tuesday, pulling back after soaring to a three-month high past 92 to the dollar earlier in a volatile session, supported by high interest rates, but facing a month-end reduction in foreign currency sales. By 1324 GMT, the rouble was 0.5% weaker against the dollar at 93.28 . "But at the same time, growth in the money supply is continuing and this will definitely result in rouble weakening." The rouble has strengthened from beyond 100 to the dollar since the decree was announced.

Persons: Maxim Shemetov, Alexei Antonov, Vladimir Putin's, Brent, Alexander Marrow, Christina Fincher, Mark Potter Organizations: REUTERS, Rights, Bank of Russia, Financial Times, Reuters, Thomson Locations: Moscow, Russia, Russian

☆ Almost half of Russians say salary does not cover basic spending - survey
▼ + stars: | 2023-10-23 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Evgenia Novozhenina/File Photo Acquire Licensing RightsMOSCOW, Oct 23 (Reuters) - The number of Russians who say their salary does not cover basic spending has jumped by 20 percentage points in two years to almost half, a survey by recruiter Headhunter showed, as Moscow diverts record fiscal resources to funding its war in Ukraine. Asked whether their salary was enough to cover basic spending, without taking into account income from second jobs or investments, just one in five Russians surveyed said yes. That is up from 25% in 2021 and 39% in 2022, Headhunter's survey showed. Of the 45% lacking the money for basic spending, more than half said they were at least 20,000 roubles ($212) short per month. The average monthly nominal wage earned by Russians was 71,419 roubles ($756) in July, Rosstat's statistics show.

Persons: Evgenia, Headhunter, Vladimir Putin, Alexander Marrow, Gareth Jones Organizations: U.S ., Russian, REUTERS, Rights, Bank of Russia's, International Monetary Fund, Thomson Locations: Moscow, Russia, Ukraine

But Russia's Accounts Chamber, which oversees budget execution, warned on Monday there were risks the Urals price would fall below $60 in 2024-2026. Russia's forecast sees economic growth of 2.3% in 2024, well above estimates of 1.1% from the International Monetary Fund and 0.5%-1.5% from the Bank of Russia. CHANGING TUNEAt Russia's flagship economic forum in St Petersburg in June, Siluanov said increasing expenditure was difficult, as budget spending had already increased by 1-1/2 times from 2019 to 2022. Now, even as the government outlines plans for spending to jump to 36.7 trillion roubles in 2024, he is more relaxed. Renaissance Capital's Donets and Melaschenko said Russia could create temporary taxes, permanently increase rates of VAT, or adjust Russia's budget rule to permit more spending of energy revenues.

Persons: Evgenia, Anton Tabakh, Vladimir Putin, Anton Siluanov, Denis Popov, Yevgeny Suvorov, Suvorov, Sofya Donets, Andrei Melaschenko, Dmitry Polevoy, Siluanov, Melaschenko, Alexei Sazanov, Sazanov, Konstantin Sonin, It's, Sumanta Sen, Mark Trevelyan, Alexander Marrow, Catherine Evans Organizations: U.S ., Russian, REUTERS, Washington, Finance, International Monetary Fund, Bank of Russia, Capital, Reuters Graphics Russia, University of Chicago, Thomson Locations: Moscow, Russia, Ukraine, West, St Petersburg

REUTERS/Maxim Shemetov/Illustration/File Photo Acquire Licensing RightsSummaryCompanies Russian rouble climbs to over 2-week high vs dollarMove comes after Putin reimposes currency controlsRouble had slumped to over 18-month low this weekAnalysts expect rouble to firm more in coming weeksOct 12 (Reuters) - Russia's rouble leapt against the U.S. dollar on Thursday after President Vladimir Putin ordered the mandatory sale of foreign currency revenues for some exporters to buttress the currency. The rouble collapsed to a record low in the weeks after Russia invaded Ukraine last year, before Moscow imposed similar capital controls that saw it recover to a seven-year high. Kogan warned, however, that by 2025-2026 businesses would form plans based on a rouble rate of 100-105. The central bank endorsed the measures, a shift in its stance, after it previously warned of the inefficiency of currency controls. "The rouble is even less tradable for foreign investors after Russia re-imposed some capital controls," Piotr Matys, senior FX analyst at In Touch Capital Markets.

Persons: Maxim Shemetov, Putin, Rouble, rouble, Vladimir Putin, Yevgeny Kogan, Kogan, Gref, Andrei Belousov, Piotr Matys, Dmitry Polevoy, Brent, Alexander Marrow, Amruta, Robert Birsel, Mark Potter, Varun, Alexander Smith Organizations: REUTERS, U.S, Russia's Higher, of Economics, TASS, Wednesday, Bank of Russia, FX, Touch, Thomson Locations: Moscow, Russia, Ukraine, outflows, Locko, Bangalore

An employee counts Russian 1000-rouble banknotes in a bank office in Moscow, Russia, in this illustration picture taken October 9, 2023. REUTERS/Maxim Shemetov/Illustration/File photo Acquire Licensing RightsOct 10 (Reuters) - The Russian rouble dived towards a more than an 18-month low on Tuesday before paring most losses in a volatile session, under pressure from domestic demand for foreign currency and a drop in oil prices. By 1034 GMT, the rouble was 0.3% weaker against the dollar at 99.63 . It had lost 0.8% to trade at 105.55 versus the euro and shed 0.4% against the yuan to 13.64 . "The bank may show a record profit of 1.5 trillion roubles for the year."

Persons: Maxim Shemetov, Sber, Yevgeny Kogan, Alexander Marrow, Ed Osmond, Gareth Jones Organizations: REUTERS, Bank of Russia, Russia's Higher, of Economics, Thomson Locations: Moscow, Russia, Russian, Brent

REUTERS/Maxim Shemetov/Illustration Acquire Licensing RightsOct 9 (Reuters) - The rouble rebounded after slumping to a more than 18-month low against the dollar on Monday in a volatile session, still hampered by reduced foreign currency supply but eventually latching on to higher oil prices to gain ground. By 1500 GMT, the rouble was 0.7% stronger against the dollar at 99.75 , recovering from hitting 102.3450 earlier, its weakest point since March 23, 2022. The Russian currency tumbled to a record low 121.5275 in the weeks after Moscow's February 2022 invasion of Ukraine. The rouble had gained 0.5% to trade at 105.24 versus the euro and firmed 0.6% against the yuan to 13.64 . The rouble-based MOEX Russian index (.IMOEX) was 0.9% higher at 3,172.2 points, earlier reaching a near one-month high.

Persons: Maxim Shemetov, rouble, Alexei Antonov, Alexander Marrow, Angus MacSwan, Mark Potter, Gareth Jones Organizations: REUTERS, Bank of Russia, Reuters, Brent, Thomson Locations: Moscow, Russia, Ukraine

A view shows a Russian one rouble coin in front of a screen in this illustration picture taken August 22, 2023. By 1125 GMT, the rouble was 1.8% weaker against the dollar at 102.18 , its weakest point since March 23, 2022. The Russian currency tumbled to a record low 121.5275 in the weeks after Moscow's February 2022 invasion of Ukraine. The rouble had lost 1.9% to trade at 107.76 versus the euro and shed 2.1% against the yuan to 14.01 . The rouble-based MOEX Russian index (.IMOEX) was 1.3% higher at 3,184.6 points, a near one-month high.

Persons: Maxim Shemetov, rouble, Alexei Antonov, Alexander Marrow, Angus MacSwan, Mark Potter Organizations: REUTERS, Bank of Russia, Reuters, Brent, Thomson Locations: Russian, Israel, Gaza, Ukraine

☆ Russian rouble hits more than seven-week low past 101 vs dollar
▼ + stars: | 2023-10-06 | by ( ) www.reuters.com time to read: +2 min

Oct 6 (Reuters) - The Russian rouble weakened on Friday, dropping to a more than seven-week low past 101 against the dollar, under pressure from lower oil prices and the reduced supply of foreign currency from exporters at the start of the month. At 0645 GMT, the rouble was 0.6% softer against the dollar at 101.02 , having earlier touched 101.50, its weakest since Aug. 14. It had lost 0.6% to trade at 106.40 versus the euro and shed 0.6% against the yuan to 13.81 . Delayed action by the authorities and Russia's trade imbalance - exports have contracted this year, while imports have recovered sharply - are causing the rouble's weakness, said Promsvyazbank analysts in a note. Brent crude oil , a global benchmark for Russia's main export, was up 0.1% at $84.15 a barrel, near its lowest since late August.

Persons: Vladimir Putin, Brent, Alexander Marrow, Jan Harvey Organizations: Bank of Russia, Thomson Locations: Russian, Ukraine, Russia's, Russia, U.S

[1/2] A view shows a Russian one rouble coin in front of a screen in this illustration picture taken August 22, 2023. REUTERS/Maxim Shemetov/Illustration/File photo Acquire Licensing RightsOct 5 (Reuters) - The Russian rouble weakened past 100 to the dollar to a more than seven-week low as President Vladimir Putin spoke on Thursday, hurt by reduced foreign currency supply from exporters early in the month. By 1535 GMT, the rouble was 0.7% weaker against the dollar at 100.30 , its weakest point since Aug. 14. The rouble has lost support of a favourable month-end tax period that usually sees exporters convert FX revenues to meet local liabilities. "But this will happen either in the second half of the month or when the exchange rate goes above 100 roubles per dollar," Antonov said.

Persons: Maxim Shemetov, Russian rouble, Vladimir Putin, Putin, Bogdan Zvarich, Alexei Antonov, Antonov, Alexander Marrow, Angus MacSwan, Paul Simao, William Maclean Organizations: REUTERS, Brent, Thomson Locations: Russian, Sochi, United States, Ukraine, Moscow, Alor

By 1150 GMT, the rouble was 0.6% stronger against the dollar at 99.17, having hit 100.2550 in early trade, a more than seven-week low. "There is still no cause for concern," Kremlin spokesman Dmitry Peskov told reporters. "Expensive oil and an increase in the key rate are improving the outlook for the rouble, but in the medium-term," Promsvyazbank analysts said. They expected the rouble to make a short-lived move beyond 100 to the dollar in the absence of new support measures from the authorities. "This level (100) is not a technical resistance, it's an important psychological barrier," said Alor Broker's Alexei Antonov.

Persons: Maxim Shemetov, Dmitry Peskov, Brent, Vladimir Putin's, Alexei Antonov, Lidia Kelly, Alexander Marrow, Andrew Heavens, Alison Williams Organizations: REUTERS, Bank of Russia, Reuters, Thomson Locations: Russian, Moscow, Russia, Ukraine, Melbourne, London

☆ Russia ramps up China yuan payments for imports amid sanctions -EBRD
▼ + stars: | 2023-09-27 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +2 min

"After Russia’s full-scale invasion of Ukraine in February 2022 and the imposition of economic sanctions by the EU, US and a number of other advanced economies, Russian imports became increasingly invoiced in yuan," according to the paper led by economists Maxim Chupilkin and Beata Javorcik. The use of the Chinese yuan for trade with Russia has also increased for third countries that did not impose economic sanctions but hold a currency swap line with the People's Bank of China (PBOC), such as Mongolia and Tajikistan. Overall, economic sanctions could herald a gradual shift away from the U.S. dollar, the study said. "The dominance of the U.S. dollar makes international sanctions more effective, as firms engaged in international trade overwhelmingly require payments to be cleared through the U.S. banking system," the authors found. "At the same time, the use of economic sanctions may over time reduce attractiveness of the U.S. dollar as a vehicle currency and hence its dominance."

Persons: Maxim Chupilkin, Beata Javorcik, SWIFT, Jorgelina, Karin Strohecker, Philippa Fletcher 私 Organizations: European Bank for Reconstruction, EU, U.S, People's Bank of China, U.S . Locations: Ukraine, China, Russia, Mongolia, Tajikistan, Russian, Rosario

☆ Russian rouble firms against euro, steady vs dollar
▼ + stars: | 2023-09-25 | by ( ) www.reuters.com time to read: +1 min

At 1452 GMT, the rouble was steady against the dollar at 96.24 and had gained 0.6% to trade at 101.98 versus the euro . The move should lead to extra government revenues - as much as 600 billion roubles ($6.23 billion) per year, according to seven Reuters sources - and could also buttress the rouble. The government said the duty would not apply if the rouble strengthened beyond 80 to the dollar. Otherwise it would range from 4% to 7%, reaching its maximum if the rouble was weaker than 95 per dollar. Russian stock indexes were lower, with the dollar-denominated RTS index (.IRTS) down 0.5% to 995 points and the rouble-based MOEX Russian index (.IMOEX) down 0.4% at 3,036.

Persons: Maxim Shemetov, Russia's, Mark Trevelyan, Gareth Jones Organizations: REUTERS, European Central Bank, Federal Reserve, Thomson Locations: Russian, Moscow

That has put pressure on risky EM currencies, echoing the dynamics observed last year when the Fed began raising rates. In the Sept. 1-6 poll, almost all beaten-down emerging market currencies were forecast to move little, or trade modestly higher against the dollar in a year, with some making small gains in three months. The underperformance of China has probably been the biggest story holding back EM currencies." Earlier this year, many analysts expected China's reopening to boost the yuan and other EM currencies, especially those exporting commodities to the world's second-largest economy, but this scenario did not unfold as anticipated. Through the end of this year, we believe most EM Asia currencies can weaken," said Nick Bennenbroek, international economist at Wells Fargo.

Persons: Chris Turner, Nick Bennenbroek, Hugo Pienaar, Devayani Sathyan, Veronica Khongwir, Jonathan Cable, Sharon Singleton Organizations: Treasury, greenback, Fed, ING, Reserve Bank of India, Korean, Bureau for Economic Research, Thomson Locations: BENGALURU, JOHANNESBURG, China, Asia, Wells Fargo, Russian, South Africa, Bengaluru

Leslie Maasdorp, Vice President and chief financial officer (CFO) of New Development Bank (NDB), speaks during an interview with Reuters at the bank's headquarters in Shanghai, China July 10, 2023. REUTERS/Aly Song/File Photo Acquire Licensing RightsJOHANNESBURG, Aug 23 (Reuters) - The New Development Bank of the BRICS group of nations will not be announcing new members at the BRICS Summit in South Africa this week, its Chief Financial Officer Leslie Maasdorp told Reuters on Wednesday. The bank, which was set up in 2015 to give BRICS members Brazil, Russia, India, China and South Africa a greater say in financing infrastructure than in Western-led institutions like the World Bank, is keen to attract new members to boost its capital base after U.S. sanctions on Russia hobbled its lending. "The process of ratifying new countries is happening at the discussion of the (BRICS) leaders, which they are having without us as the bank," Maasdorp told Reuters in an interview on the sidelines of the summit. ($1 = 94.4650 roubles)Reporting by Rachel Savage; Writing by Bhargav Acharya; Editing by Alexander Winning and Emelia Sithole-MatariseOur Standards: The Thomson Reuters Trust Principles.

Persons: Leslie Maasdorp, Aly, Maasdorp, Rachel Savage, Bhargav Acharya, Alexander Winning, Emelia Organizations: New Development Bank, Reuters, REUTERS, Rights, World Bank, United, United Arab Emirates, U.S ., Thomson Locations: Shanghai, China, Rights JOHANNESBURG, South Africa, Brazil, Russia, India, Western, Egypt, Bangladesh, United Arab, Saudi Arabia, Algeria, Argentina

☆ Rouble weakens past 95 vs dollar amid capital controls speculation
▼ + stars: | 2023-08-17 | by ( ) www.reuters.com time to read: +1 min

The newly designed Russian 100-rouble banknotes are seen at the Goznak printing factory in Moscow, Russia July 6, 2022. It reached a near 17-month low of 101.75 against the dollar on Monday and briefly traded at 92.60 on Tuesday morning. Authorities are discussing bringing back the compulsory sale of foreign currency revenues for exporters, five sources told Reuters. Beyond rate hikes and capital controls, Moscow has some other options, though none particularly favourable. For Russian equities guide seeFor Russian treasury bonds seeReporting by Alexander Marrow; Editing by Toby ChopraOur Standards: The Thomson Reuters Trust Principles.

Persons: Russian rouble, rouble, Alexander Marrow, Toby Chopra Organizations: Moscow News Agency, Handout, Bank of, Authorities, Brent, Thomson Locations: Moscow, Russia, Russian, Bank of Russia

The need to reintroduce stringent capital controls comes as Russian authorities grapple with a sharply weakening rouble, which tumbled past 100 to the dollar on Monday. One source at an exporting firm said the discussions concerned the forced conversion of up to 90% of exporters' revenues. Exporters who fail to return revenues to Russia could lose government support measures, too. One Russian banking source told Reuters that about $39 billion is stuck in Indian banks, which oil companies are unable to return to Russia. The high-level source said a minimal level of revenues was held in rupees, with even less in roubles.

Persons: Dado Ruvic, Central Bank Governor Elvira Nabiullina, Elena Fabrichnayaand Anastasia Lyrchikova, Gleb Stolyarov, Alexander Marrow, Gareth Jones, Nick Macfie Organizations: REUTERS, Reuters, RBC, FX, Central Bank Governor, Thomson Locations: Russia, Ukraine MOSCOW, Ukraine, Russia's, Moscow, India, Tbilisi

[1/2] Chinese Yuan and U.S. dollar banknotes are seen in this illustration taken March 10, 2023. That represented the highest annual growth rate since comparable records began in 2001. "BoE Sep rate hike bets have jumped ... providing support for the GBP," said Scotiabank chief FX strategist Shaun Osborne. The yuan briefly bounced back as major state-owned banks were seen selling dollars to support the local currency. Punctuating those worries, Chinese data on industrial output, retail sales and investment released shortly after the PBOC's rate cut showed unexpected slowdowns.

Persons: Yuan, Dado Ruvic, Sterling, BoE, Shaun Osborne, Scotiabank's Osborne, Osborne, Shinichiro Kadota, Shunichi Suzuki, Joice Alves, Samuel Indyk, Brigid Riley, Kevin Buckland, Susan Fenton Organizations: REUTERS, Bank of, Kremlin, Bank of England, Scotiabank, People's Bank of China, U.S, Traders, Barclays, Finance, Thomson Locations: Russian

☆ Russia's rouble rises ahead of central bank extraordinary meeting
▼ + stars: | 2023-08-15 | by ( ) www.reuters.com time to read: +3 min

Russia's central bank will hold an extraordinary meeting at on Tuesday to discuss the level of its key interest rate, currently at 8.5%. A decision will be published at 10:30 Moscow time (0730 GMT), the central bank said. The central bank's most recent emergency hike came in late February 2022 with a rate raise to 20% in the immediate fallout of Russia's invasion of Ukraine. After that, the bank steadily lowered the cost of borrowing before quickening inflation forced a 100-basis-point hike to 8.5% last month. "The central bank has all the tools to normalise the situation in the near future," President Vladimir Putin's economic adviser Maxim Oreshkin said on Monday.

Persons: Shamil Zhumatov, Rouble, Vladimir Putin's, Maxim Oreshkin, Putin, Guy Faulconbridge Organizations: REUTERS, Central, Sber Investments, Reuters, Thomson Locations: MOSCOW, Russian, Ukraine, Russia's, Moscow, Russia, Europe

A Russian rouble banknote is seen in front of a descending and rising stock graph in this illustration taken March 1, 2022. So it’s no surprise that a day after prodding by a Kremlin official, the central bank announced an emergency rate increase of 350 basis points to 12%. Stricter fiscal or monetary policies would hurt an economy weakened by the war effort and Western sanctions. After a record high in 2022, it fell 85% in the first seven months of the year, to some $25 billion, according to the Russian central bank. Before the plunge in the currency, the central bank forecast prices rising 5% to 6.5% this year, above its 4% target.

Persons: Dado Ruvic, Vladimir Putin, it’s, Putin, Elvira Nabiullina, Vladimir Putin’s, Maxim Oreshkin, Neil Unmack, Oliver Taslic Organizations: REUTERS, Reuters, Kremlin, Reuters Graphics Reuters, Thomson Locations: Russia, Russian, Europe

☆ Russian stocks retreat from pre-invasion high as rouble rebounds
▼ + stars: | 2023-08-14 | by ( Alexander Marrow | ) www.reuters.com time to read: +3 min

FILE PHOTO: A board showing currency exchange rates of the U.S. dollar and euro against Russian rouble is on display in a street in Moscow, Russia, August 12, 2023. By 1510 GMT, the rouble was 1% stronger against the dollar at 98.45 , firming back below the 100 threshold. Stocks on Monday briefly hit their highest since before Moscow launched what it calls a “special military operation” in Ukraine, before falling back. The rouble-based MOEX Russian index was 0.1% higher at 3,157.1 points. A trader at a large Russian bank told Reuters the market was confused: “Everyone is ready for the inflow of revenues from expensive oil, but it seems to be hanging somewhere, and our regulators are somehow indifferent, there is nothing to rely on.”

Persons: Evgenia, Vladimir Putin’s, ”, firming, Stocks, Yulia Goldina, ” Goldina, “, Brent Organizations: Reuters, U.S ., Russian, REUTERS, Investments, Sinara Investment Bank, BCS Locations: Moscow, Ukraine, Russia, Russian

☆ Russian rouble sinks, Kremlin blames loose monetary policy
▼ + stars: | 2023-08-14 | by ( ) www.reuters.com time to read: +4 min

"The main source of rouble weakening and accelerating inflation is soft monetary policy," Oreshkin wrote. "The central bank has all the tools to normalise the situation in the near future and ensure that lending rates are reduced to sustainable levels. Last week, Russia effectively abandoned its budget rule, with the central bank halting the finance ministry's FX purchases to try and reduce volatility. "The central bank is not fully in control," independent Moscow-based economist Ian Melkumov told Reuters, although it has aggressive tools that it is currently reluctant to use. "(But) the central bank doesn't want to kill the economy and businesses in the same way it had to last year."

Persons: Kremlin, Rouble, Vladimir Putin's, Putin, Maxim Oreshkin, Oreshkin, Timothy Ash, Ian Melkumov, Alexander Marrow, Gareth Jones Organizations: TASS, Kremlin, of Russia, Moscow News Agency, Handout, REUTERS, Reuters, BlueBay Asset Management, Thomson Locations: MOSCOW, Ukraine, Russia, Moscow, London

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