RUSSIAN ECONOMIC AND FINANCIAL DEVELOPMENTS
FOR WEEK ENDING JANUARY 14, 2000
19 JAN 00
SOURCE: US EMBASSY MOSCOW
----------------------------
FINANCIAL MARKET INDICATORS
---------------------------
1. FINANCIAL MARKET TRENDS
THE STOCK MARKET CONTINUED TO HIT NEW HIGHS IN THE
BEGINNING OF 2000. RTS INDEX REACHED THE LEVELS OF
JUNE 1998 IN REAL TERMS ACCOMPANIED BY VERY HIGH
VOLUMES. RTS INDEX INCREASED BY 9.27 PERCENT IN REAL
TERMS FOR THE WEEK.
INTERNATIONAL RESERVES DECREASED BY USD200 MILLION AND
TOTALED USD12.3 BILLION DURING THE FIRST WEEK OF 2000.
THE MONETARY BASE WENT UP AGAIN BY 1.05 PERCENT OR R3.2
BILLION, TO REACH R309.2 BILLION.
---------------------------------------------
2. ECONOMIC AND FINANCIAL MARKET DEVELOPMENTS
---------------------------------------------
-- ACCORDING TO IMF DATA, RUSSIA HAS REDUCED IT'S DEBT
TO THE IMF BY USD3.6 BILLION IN 1999. CURRENTLY, THE
TOTAL AMOUNT RUSSIA OWES TO THE IMF IS USD15.2 BILLION.
-- RUSSIAN GOVERNMENT HAS SET THE AVERAGE MONTHLY WAGE
TO, EQUAL R1175 IN THE FORTH QUARTER FOR THE PURPOSES OF
THE PENSION ESTIMATIONS STARTING FROM FEBRUARY 2000.
-- ACCORDING TO THE TAX MINISTRY, TOTAL TAX
COLLECTIONS BY THE TAX MINISTRY WERE R377.4 BILLION IN
1999, 2.4 TIMES HIGHER THAN A YEAR BEFORE. THIS IS 40
PERCENT HIGHER THAN THE TARGETED R269.3 BILLION.
ACCORDING TO THE TAX MINISTRY, AROUND 4 MILLION PEOPLE
WILL SUBMIT TAX DECLARATIONS FOR THE YEAR 1999.
-- FOR THE PURPOSE OF COVERING THE BUDGET DEFICIT, THE
MONEY EMISSION MAY TAKE PLACE IN MARCH OF 2000.
ACCORDING TO THE DIRECTOR OF THE INSTITUTE OF THE
PROBLEMS OF THE GLOBALIZATION, MIKHAIL DELYAGIN, THIS
EMISSION MAY TOTAL NO LESS THAN USD1.5 BILLION IN THE
RUBLE EQUIVALENT.
-- ACCORDING TO THE ACTING PRESIDENT VLADIMIR PUTIN,
PENSIONS WILL BE INCREASED BY 20 PERCENT STARTING FROM
FEBRUARY 1, 2000. EARLIER IN OCTOBER 1999, GOVERNMENT
ANNOUNCED 12-PERCENT PENSION INCREASE IN FEBRUARY.
PENSION WILL BE INCREASED TO UP TO R650
-- ACCORDING TO THE FIRST DEPUTY PRIME MINISTER MIKHAIL
KASIANOV, THE FEDERAL GOVERNMENT TRANSFERS R90 MILLION
TO CHECHNYA EACH MONTH TO PAY PENSIONS AND WAGES IN
THIS REGION. THE FINANCE MINISTRY AND MINISTRY OF
ECONOMY ARE CURRENTLY WORKING ON THE PROGRAM OF
REVIVING THE ECONOMY OF CHECHNYA. KASIANOV ALSO
MENTIONED THAT THERE IS A STRICT CONTROL OVER THE
DISTRIBUTION OF THE FEDERAL RESOURCES IN CHECHNYA.
--------------
3. BANK ALERT
--------------
-- THE CENTRAL BANK OF RUSSIA (CBR) REPORTED RUSSIA'S
GOLD AND CURRENCY RESERVES AT USD12.3 BILLION ON
JANUARY 7, COMPARED WITH USD12.5 AS OF DECEMBER 31,
1999.
-- THE CBR HAS INCREASED ITS MANDATORY RESERVE FUND
REQUIREMENT FOR COMMERCIAL BANKS EFFECTIVE JANUARY 1.
COMMERCIAL BANKS ARE REQUIRED TO SET ASIDE 10 PERCENT
INSTEAD OF 8.5 PERCENT FOR CORPORATE ACCOUNTS IN RUBLES
AND CORPORATE AND PERSONAL ACCOUNTS IN FOREIGN CURRENCY
AND 7 PERCENT INSTEAD OF 5.5 PERCENT FOR PERSONAL CASH
DEPOSITS ON RUBLE ACCOUNTS. THE DEADLINE FOR THE
TRANSFER OF ADDITIONAL FUNDS INTO RESERVE FUND WAS SET
FOR JANUARY 18.
-- CBR CHAIRMAN VIKTOR GERASHCHENKO WANTS TO RAISE THE
MANDATORY HARD CURRENCY SALE OF EXPORT EARNINGS FROM
THE PRESENT 75 PERCENT TO 100 PERCENT TO STRENGTHEN
STATE REGULATION OF THE HARD CURRENCY MARKET. THE CBR
CHIEF SENT A LETTER TO THE PRIME MINISTER IN LATE
DECEMBER WHERE HE PREDICTED THAT THE SITUATION ON THE
CURRENCY MARKET WOULD BECOME COMPLICATED IF ADDITIONAL
MEASURES WERE NOT TAKEN. GERASHCHENKO NOTED THAT THE
COMPLICATIONS COULD ALREADY AT THE BEGINNING OF THE
YEAR LEAD TO A LOSS OF AROUND USD1.5 BILLION IN
SEASONAL EXPORT EARNINGS. ACTING PRESIDENT AND PRIME
MINISTER VLADIMIR PUTIN SPOKE OUT IN FAVOR OF THE
PROPOSED MEASURE BUT STRESSED THAT IT MAY NOT BE
INTRODUCED SOONER THAN Q3.
-- THE CBR HAS TOUGHENED MEASURES FOR RESIDENTS BUYING
HARD CURRENCY TO PAY FOR SERVICES AND SALARIES. NOW
COMPANIES BUYING OVER USD10 THOUSAND IN FOREIGN
CURRENCY TO PAY FOR WORK, SERVICES AND INTELLECTUAL
ACTIVITY MUST PRESENT PERMISSION FROM RUSSIA'S FEDERAL
SERVICE FOR CURRENCY AND EXPORT CONTROL. THE LIST OF
SERVICES INCLUDES THAT OF HOTELS, COMPUTER TECHNOLOGY,
EDUCATION, HEALTHCARE, TOURISM AND LEISURE. THE CBR'S
NEW RULING DOES NOT EXTEND TO BANKS BUYING FOREIGN
CURRENCY WITH THEIR OWN FUNDS TO PAY FOR WORK, SERVICES
OF INTELLECTUAL ACTIVITY.
-- TOTAL SAVINGS BY RUSSIAN CITIZENS IN BANK ACCOUNTS,
SECURITIES AND CASH AMOUNTED TO R432.2 BILLION AS OF
DECEMBER 1, 1999, COMPARED WITH R424.5 BILLION AT THE
START OF NOVEMBER 1999 AND R306.4 BILLION AT THE START
OF DECEMBER 1998, ACCORDING TO THE RUSSIAN STATE
STATISTICS COMMITTEE. BANK ACCOUNTS CONSTITUTED 46.9
PERCENT OF THE ABOVE TOTAL, SECURITIES AND CASH
CONSTITUTED 19.5 PERCENT AND 33.6 PERCENT,
RESPECTIVELY.
-- THIS COMING WEEK THE AGENCY FOR RESTRUCTURING CREDIT
ORGANIZATIONS (ARCO) WILL TRANSFER THE FIRST R20-
MILLION TRANCHE OF THE R400-MILLION TOTAL ALLOCATED FOR
REPAYMENTS TO SMALL CREDITORS OF SBS-AGRO.
-- BANK AUSTRIA CREDITANSTALT (RUSSIA) DOUBLED ITS
OPERATING VOLUMES LAST YEAR. THE INCREASED VOLUME WAS
A RESULT OF GREATER BANK ACTIVITY ON THE MARKET AND AN
EXPANDING CLIENT BASE. BANK AUSTRIA IS THE FIRST
FOREIGN BANK TO OPEN THREE BRANCHES IN MOSCOW. IT
OFFERS CLIENTS VISA DEBIT CARDS, ATM SERVICES AND
DIRECT DEPOSIT OF SALARIES. BANK AUSTRIA CREDITANSTALT
(MOSCOW) WAS RANKED 37TH ON THE INTERFAX-100 LIST OF
MAJOR RUSSIAN BANKS, BASED ON FIGURES THROUGH THE FIRST
NINE MONTHS OF 1999. PAID-IN CHARTER CAPITAL TOTALS
R1.77 BILLION.
---------
4. PRICES
---------
ACCORDING TO GOSKOMSTAT, INFLATION DURING THE FIRST 10
DAYS OF JANUARY TOTALED 1.1 PERCENT.
--------------------------
5. FINANCIAL MARKET TABLES
--------------------------
-------------------------------------------------------
A. THE RUBLE FIRMS UP BY THE END OF THE WEEK, STILL 6
PERCENT DOWN AGAINST THE DOLLAR SINCE THE START OF 2000
-------------------------------------------------------
AT THE START OF 2000, NOT SURPRISINGLY, THE RUBLE SWOOPED
DOWN. CBR'S INTERVENTIONS DURING THE FIRST TWO TRADING
DAYS AT MICEX (JANUARY 5 AND 6) APPEARED TO BE
INEFFICIENT AND ON JANUARY 11 THE CBR BOARD OF DIRECTORS
DECIDED TO INCREASE RESERVE REQUIREMENTS (SEE BANK
ALERT). THE STEP WHICH WAS EXPECTED TO VACUUM UP SOME
R20 BILLION FROM RECORD HIGH R88 BILLION IN CORRESPONDENT
ACCOUNTS WITH THE CBR BROUGHT IMMEDIATE RESULT. ALREADY
ON JANUARY 12, AS THE CBR DECISION BECAME PUBLIC BETWEEN
THE TWO MICEX SESSIONS, THE "TOM" RUBLE CLOSED 1452
POINTS UP FROM THE "TOD" AVERAGE. AFTER THAT, THE RUBLE
WENT ON SLOWLY BUT STEADILY FIRMING. NEVERTHELESS, THE
"TOD" RUBLE CLOSED FRIDAY 5.82 PERCENT DOWN FROM THE
RESULT OF THE LAST SESSION IN 1999. WHILE AVERAGE
MORNING SESSION TRADE VOLUME THIS WEEK WAS PRETTY HIGH AT
USD190.6 MILLION, AVERAGE AFTERNOON SESSION VOLUME WAS A
RECORD HIGH USD165.1 MILLION. ACCORDING TO SOME MARKET
ANALYSTS, IN THE VERY SHORT RUN THE RUBLE WILL LIKELY
REMAIN STABLE OR EVEN, UNTIL THE FIRST WEEK OF FEBRUARY,
SLIGHTLY APPRECIATE.
TABLE 1A: RUBLE RATES -- MICEX SELT TRADING (NOTE 1)
------------------------------------------------
USD-TOD USD-TOD USD-TOM USD-TOM
DATE AVERAGE VOLUME AVERAGE VOLUME
PRICE (USD MN) PRICE (USD MN)
------------------------------------------------
01/10/00 27.7349 142.51 27.9829 152.30
01/11/00 28.4365 259.30 28.7025 272.97
01/12/00 28.8462 212.00 28.6990 115.69
01/13/00 28.6485 210.93 28.6847 119.58
01/14/00 28.5748 127.55 NO TRADING
TABLE 1B: RUBLE RATES -- CASH RATES AT EXCHANGE POINTS
(RUBLES PER USD) (NOTE 2)
-------------------------------------------------
PRCT CHNG PRCT CHNG
DATE AVERAGE AGAINST AVERAGE AGAINST
BUY WEEK AGO SELL WEEK AGO
-------------------------------------------------
01/10/00 27.66 N/A 28.11 N/A
01/11/00 28.27 N/A 29.34 N/A
01/12/00 28.46 N/A 28.96 N/A
01/13/00 28.39 4.18 28.83 3.97
01/14/00 28.38 3.58 28.68 3.17
TABLE IC: RUBLE RATES-- CBR OFFICIAL EXCHANGE RATE
-----------------------------------------
PRCT CHNG PRCT CHNG
DATE OFFICIAL AGAINST AGAINST
RATE WEEK AGO 01/01/00
-----------------------------------------
01/10/00 27.2300 0.85 0.85
01/11/00 27.7300 2.70 2.70
01/12/00 28.4400 5.33 5.33
01/13/00 28.8500 7.25 6.85
01/14/00 28.6500 5.21 6.11
---------------------
B. OFZ MARKET
---------------------
PRICES ON THE SECONDARY GKO/OFZ MARKET WERE GROWING
ALMOST ALL WEEK WITH SMALL NEGATIVE PRICE CORRECTIONS
WHICH TOOK PLACE ON IN THE BEGINNING OF THE WEEK.
LATER ON THE WEEK THE POSITIVE TREND PICKED UP AND THE
YIELDS OF THE LONGER OFZ YIELDS WENT DOWN TO AS LOW AS
55-59 PERCENT P.A. THE SHORTEST-TERM OFZ ISSUE NUMBER
O22 WHICH MATURES ON FEB.23, 2000 HAD YIELD OF 23.1
PERCENT P.A. AT THE END OF THE WEEK. THE TRADE
ACTIVITY WAS MODERATE THROUGHOUT THE WEEK.
------------------------------------
C. SHORT-TERM INTERBANK SHARPLY DOWN
------------------------------------
SHORT-INTERBANK RUBLE LOAN RATES WENT DOWN IN THE
BEGINNING OF JANUARY AS BANKS HAVE FOUND THEMSELVES
WITH THE STOCK OF THE UNUSED RUBLES ON THEIR
CORRESPONDENT ACCOUNTS AT THE CBR. BALANCES ON BANKS'
CORRESPONDENT ACCOUNTS HIT UNPRECEDENTED HIGH LEVELS,
REACHING R88.3 BILLION ON JAN.11, 2000. TO LOWER THE
RUBLE LIQUIDITY ON THE MARKET, THE CBR HAD TO IMPLEMENT
THE NEW HIGHER OBLIGATORY BANK RESERVES RATE WHICH
LOWERED THE AMOUNT OF SPARE RUBLES IN THE BANKING
SYSTEM.
--------------------------
TABLE 4: INTERBANK CREDIT
--------------------------
DATE PERIOD (IN DAYS)
-----------------------------------------------------
1 7 14 30 60 90
-----------------------------------------------------
JAN 05 MIBID 11.7 --- --- --- --- ---
MIBOR 18.3 --- --- --- --- ---
JAN 06 MIBID 11.0 08.0 10.0 55.0 17.0 20.0
MIBOR 21.5 30.0 32.0 42.0 43.0 45.0
JAN 10 MIBID 08.6 08.0 10.0 15.0 17.0 20.0
MIBOR 17.2 30.0 32.0 42.0 43.0 45.0
JAN 11 MIBID 05.6 05.0 07.0 13.0 15.0 20.0
MIBOR 11.2 12.0 15.0 23.0 27.0 35.0
JAN 12 MIBID 05.2 05.0 07.0 13.0 15.0 20.0
MIBOR 10.4 12.0 15.0 23.0 27.0 35.0
JAN 13 MIBID 06.2 04.0 07.0 10.0 12.0 17.0
MIBOR 11.0 10.0 17.0 20.0 25.0 35.0
JAN 14 MIBID 04.3 04.0 07.0 10.0 12.0 17.0
MIBOR 08.8 10.0 17.0 20.0 25.0 35.0
---------------------
D. STOCK MARKET RALLY
---------------------
THE STOCK MARKET RALLY WHICH BEGAN IN DECEMBER OF 1999
CONTINUED THROUGH THE FIRST TWO WEEKS OF THIS MONTH EVEN
AT A FASTER PACE. NON-RESIDENTS WERE VERY ACTIVE
THROUGHOUT THE WEEK. THE SECOND-TIER STOCK WAS IN THE
DEMAND ALSO. LEADERS OF THE WEEK WERE THE "ENERGO"
SHARES. AFTER THE SLIGHT DECREASE IN THE BEGINNING OF
THE WEEK WHICH IS EXPLAINED BY THE TECHNICAL CORRECTIONS
AS A RESULT OF THE PROFIT TAKING, THE MARKET BEGAN TO
GROW AGAIN CLIMBING TO THE HIGHEST LEVELS ON FRIDAY.
TRADE VOLUMES WERE VERY HEALTHY THROUGHOUT THE WEEK
REACHING MAXIMUM OF USD40 MILLION ON FRIDAY. THE HIGHER
VOLUME WAS LAST WITNESSED BACK IN JULY 22, 1998. THIS
DAY, THE RTS INDEX REACHED THE HIGHEST LEVEL OF 2O2.7
SINCE JUNE 1998. FOR THE WEEK THE RTS INDEX WENT UP BY
9.27 PERCENT IN REAL TERMS AND SINCE THE BEGINNING OF
THE YEAR IT GAINED 15.7 PERCENT IN REAL TERMS.
--------------------------
TABLE 5: RTS STOCK INDICES
--------------------------
DOLLAR
DATE RTS INDEX PERCENT CHANGE ADJUSTED
(R) NOMINAL (RUB) REAL (USD)
JAN 05 1086.88 2.14 2.14 179.01
JAN 06 1122.21 3.25 3.64 185.52
JAN 10 1177.17 4.90 3.63 192.25
JAN 11 1136.93 -3.42 -5.16 182.33
JAN 12 1210.02 6.43 3.77 189.20
JAN 13 1270.66 5.01 3.52 195.86
JAN 14 1305.96 2.78 3.50 202.71
-------------------------
E. INTERNATIONAL RESERVES
-------------------------
INTERNATIONAL RESERVES OF THE CENTRAL BANK AND THE
FINANCE MINISTRY KEPT FALLING FOR THE LAST TWO WEEKS
AND TOTALED USD12.3 MILLION LAST WEEK, WHICH IS STILL
0.82 PERCENT ABOVE OF THE LEVEL OF JANUARY, 1999. FOR
THE YEAR, THE INTERNATIONAL RESERVES INCREASED BY 1.9
PERCENT. THE CURRENCY RESERVES INCREASED BY 8.4
PERCENT IN 1999 AND TOTALED USD8.5 BILLION, AT THE MEAN
TIME GOLD RESERVES DECREASED BY 9.6 PERCENT AND TOTALED
USD4 BILLION. IN THE STRUCTURE OF THE INTERNATIONAL
RESERVES, CURRENCY RESERVES TOTAL 67.9 PERCENT (63.8
PERCENT IN 1998) AND GOLD RESERVES TOTALED 32.1 PERCENT
(36.2 PERCENT IN 1998).
-----------------------------------------
TABLE 6: INTERNATIONAL RESERVES (NOTE 5)
-----------------------------------------
INTERNATIONAL BLN USD PERCENT CHG PERCENT CHG
RESERVES PREV WK 01.01.00
01.07.00 12.3 -1.6 -00.0
12.31.99 12.5 -1.6 02.5(PRNT CHNG 01.01.99
12.24.99 12.7 5.8 04.1(PRNT CHNG 01.01.99
12.17.99 12.0 1.7 -01.6(PRNT CHNG 01.01.99
12.10.99 11.8 2.6 -03.3(PRNT CHNG 01.01.99
----------------
F. MONETARY BASE
----------------
MONETARY BASE CONTINUED TO GROW FOR THE FIFTH WEEK IN A
ROW. DURING THE FIRST TEN DAYS OF 2000, IT GREW BY
R3.2 BILLION AND TOTALED R309.2 BILLION. THE WEEK
BEFORE THE (AT THE END OF DECEMBER 1999) BASE MONEY
INCREASED AN UNPRECEDENTED HIGH 5.81 PERCENT.
--------------------------------
TABLE 7: MONETARY BASE (NOTE 6)
--------------------------------
MONETARY BLN RUBLES PRCT CHNG FROM PRCT CHNG FROM
BASE PREV. WEEK PREV. 4 WK AVG
01.10.00 309.2 1.05 7.3
12.27.99 306.0 5.81 9.5
12.20.99 289.2 1.58 4.7
12.13.99 284.7 4.44 3.8
12.06.99 272.6 0.33 -1.1
12.29.99 271.7 -0.60 -1.0
--------------------------
G. CORRESPONDENT ACCOUNTS
--------------------------
-------------------------------------------
TABLE 8: BALANCES ON CORRESPONDENT ACCOUNTS
-------------------------------------------
DATE BALANCE (BLN RUB)
01.10.99 -
01.11.99 88.296
01.12.99 81.484
01.13.99 81.586
01.14.99 74.647
------------------
EXPLANATORY NOTES
------------------
1. EXCHANGE RATES: SELT - "SYSTEM OF ELECTRONIC LOT
(CURRENCY) TRADING" - A COMPUTER-BASED OTC-TYPE TRADING
SYSTEM ORGANIZED BY THE MOSCOW INTERBANK CURRENCY
EXCHANGE (MICEX). USD-TOD PRICE IS THE PRICE OF THE
DOLLAR WITH THE SAME DAY DELIVERY. USD-TOM PRICE IS
THE PRICE OF THE DOLLAR WITH DELIVERY ON THE NEXT DAY.
MINIMUM LOT SIZE FOR EACH OF THE DOLLAR INSTRUMENTS IS
USD1OO,OOO. AVERAGE PRICE IS QUOTED AS THE WEIGHTED
AVERAGE OF ALL THE BIDS AND OFFERS ENTERED INTO THE
SYSTEM BY VARIOUS BANKS.
2 AVERAGE CASH RATES ARE QUOTED AS CALCULATED BY THE
INTER-LINE INFORMATION AGENCY THAT PROCESSES DATA FROM
OVER 500 EXCHANGE POINTS IN THE CITY OF MOSCOW.
3 INTEREST RATES: THE TABLE PROVIDES MOSCOW INTERBANK
BID (MIBID) AND MOSCOW INTERBANK OFFERED RATE (MIBOR)
B ANNUALIZED AVERAGE BID AND OFFER RATES ON SHORT-TERM
RUBLE LOANS BETWEEN COMMERCIAL BANKS.
4 STOCK INDICES: THE RTS INDEX, IS THE ONLY OFFICIAL
INDICATOR OF THE RUSSIAN TRADING SYSTEM. IT IS
CIRCULATED EVERY 30 MINUTES OF THE RTS TRADE SESSION,
STARTING FROM 12:00. IT COMPRISES 60 SHARES OF 35
LEADING COMPANIES. THIS SHARES ARE INCLUDED IN SO-
CALLED CATEGORY "A" LISTING. THE INDEX INDICATES OVER-
THE-COUNTER STOCK PRICES. THE INDEX REPRESENTS THE
RATIO OF THE TOTAL MARKET CAPITALIZATION OF THE SHARES
OF THE COMPANIES SELECTED FOR THE INDEX TO THE TOTAL
MARKET CAPITALIZATION OF THE SAME SHARES AS OF THE
INITIAL DATE MULTIPLIED BY THE INDEX VALUE AS OF THE
INITIAL DATE (31 DECEMBER, 1997) USING A BASE OF 100
BEGINNING SEPTEMBER 1, 1995. THE RUBLE-ADJUSTED INDEX
IN A DERIVATIVE OF THE MAIN DOLLAR INDEX, USING THE
SAME BASE.
5 INTERNATIONAL RESERVES OF THE RUSSIAN FEDERATION
REPRESENT THE AMOUNT OF RESERVE ASSETS OF THE BANK OF
RUSSIA AND FINANCE MINISTRY. THOSE RESERVE ASSETS ARE
COMPRISED OF MONETARY GOLD, SPECIAL DRAWING RIGHTS, THE
RESERVE POSITION IN THE IMF AND OTHER LIQUID FOREIGN
CURRENCY ASSETS. THE LATTER INCLUDE SHORT-TERM
DEPOSITS IN NONRESIDENT AND RESIDENT BANKS, BALANCES IN
CURRENT ACCOUNTS, FOREIGN GOVERNMENT SECURITIES, REPO
AGREEMENTS WITH THESE SECURITIES MADE WITH
NONRESIDENTS, AND OTHER LIQUID ASSETS (ACCRUED INTEREST
ON THESE ASSETS IS NOT INCLUDED). MONETARY GOLD IS
EVALUATED AT USD300 PER TROY OZ. FOREIGN CURRENCY
ASSETS ARE CONVERTED INTO US DOLLARS ON THE BASIS OF
THE CROSS RATES OF FOREIGN CURRENCIES TO THE USD,
CALCULATED USING THE OFFICIAL RATES OF THE RUBLE TO
THESE FOREIGN CURRENCIES, SET BY THE CBR.
6. MONETARY BASE (ML) IS COMPRISED OF CASH AND RESERVES
OF COMMERCIAL BANKS ON DEPOSIT IN THE CBR. IT IS THE
BASIC PART OF THE MONEY SUPPLY (M2).
7. LOMBARD CREDITS, DISTRIBUTED THROUGH AUCTIONS, ARE
AIMED TO PROVIDE THE LIQUIDITY TO THE BANKING SECTOR.
THESE CREDITS ARE EXTENDED TO BANKS ON THE BASIS OF
COLLATERAL (T-BILLS, OR MORE RECENTLY, SHARES).