According to the CBR, Russia’s international reserves increased USD 4.0bn in August to reach USD 514.6bn as of 1 September. Foreign currency reserves increased USD 3bn and gold gained USD 1.1bn.
August surprised, with global financial markets performing better than economic agents expected. Hence, the CBR’s international reserves advanced mainly on currency revaluation. We believe the stronger euro and pound vs. the dollar (+USD 4.1bn and +USD 1.0bn) were the key factors driving the headline change in the CBR’s reserves. According to official data, the CBR’s net selling during the reported period (1-31 August) totalled USD 0.45bn (RUB 12.4bn), reduced the reserves.
Maxim Oreshkin, Daria Isakova
VTB Capital analyst
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