The Russian economy has experienced four major crises over the past decades. To determine which anti-crisis decisions the Bank of Russia made, whether they were efficient, and what lessons each crisis taught, one can refer to the Bank of Russia’s analytical paper.
The Bank of Russia has launched a new online resource, providing access to both modern books and periodicals relevant to everyday work, as well as unique antique books detailing the history of financial science, economics, and banking in Russia and worldwide.
Elvira Nabiullina, the Governor of the Bank of Russia, addressed the 10th All-Russian Congress of Financial Education Volunteers on June 21, 2024. She emphasized the significance of social initiatives in financial education and underscored the importance of trust in information sources.
Annual inflation across Russia increased by 0.46 percentage points compared to April, reaching 8.3%. Price growth accelerated in 71 Russian regions. The North Caucasian Federal District saw the most significant acceleration, while inflation slightly slowed down in the Urals.
The publication covers the main aspects of the discussion about the economic situation and inflation, monetary and external conditions, and alternatives to the key rate decision.
Business activity continued to grow in June, according to the Bank of Russia’s Business Climate Index. The index exceeded the 2024 Q1 average, approaching twelve-year highs despite a 10.4-point drop.
Most Russians preferred cashless payments in 2023, according to recent data. The most popular methods of these payments were bank card payments (75%), mobile and online bank payments (48%), and payments via the Faster Payment System (28%).
Current price growth substantially accelerated in May. Inflation was significantly fueled by the increase in prices for tourism and passenger transport services, which are characterized by elevated volatility. However, the rise in prices for underlying components of inflation sped up compared to April, surpassing the rates of 2023 Q4 on certain indicators. Annual inflation increased to 8.3%.
On June 19, 2024, the Federation Council approved a law aimed at reducing borrower risks by limiting variable interest rate loans to individuals and micro businesses. The law will take effect on September 1, 2024.
At the meeting of the Foreign Exchange Policy Advisory Board of Central (National) Banks of the Eurasian Economic Union (EAEU) Member States, which took place in Sochi, participants discussed specific aspects of the interaction between monetary policy and other state policies. The discussion particularly focused on approaches to harmonizing financial market legislation among EAEU member states.
The Bank of Russia recommends that financial institutions use their remote channels to provide services to people with disabilities, elderly individuals, and people with limited mobility. Additionally, these channels should be used to verify the powers of authorized persons acting on their behalf.
In the first quarter of 2024, household funds increased by 3.8% amid growing incomes, high interest rates, and the capitalization of interest on deposits. This represents the highest first-quarter value recorded. The 2024 forecast for household funds was revised from an initial range of 8–13% to a new range of 14–19%.
The market of platform services, including investment and financial platforms and information systems where digital financial assets (DFAs) are issued, is becoming increasingly attractive to investors, especially given rising interest rates. The overall amount of transactions exceeded ₽282 billion as of the end of 2023 and 2024 Q1.
On June 17, 2024, the Bank of Russia revoked the banking license of Joint Stock Company Avtogradbank (JSC Avtogradbank), as per Order No. OD-947. The institution ranked 218th by assets in the Russian banking system.
The June 2024 results of the monitoring of the maximum interest rates on deposits in Russian rubles for the top ten credit institutions attracting the largest amount of household deposits are as follows:
From January 1, 2025, non-governmental pension funds (NPFs) will be required to identify and manage conflicts of interest. However, these funds will only be able to allow such conflicts if they do not violate clients' rights and clients have been informed about the conflict. These provisions are outlined in a Bank of Russia draft ordinance published for public consultation.
From June 13, 2024, the Bank of Russia will set the official US dollar/ruble and euro/ruble exchange rates based on reporting data from credit institutions and the results of interbank conversion transactions in the over-the-counter FX market as of 15:30 Moscow time on the same business day.
The Bank of Russia has decided against conducting trading sessions before 9:50 Moscow time in the MOEX FX, precious metals, and derivatives markets from June 14, 2024, until further notice.
The Bank of Russia has decided to suspend trading in Hong Kong dollars starting June 13. On Thursday, trading sessions in the MOEX FX and precious metals markets, as well as the derivatives market with settlements in foreign currencies other than the US dollar, euro, and Hong Kong dollar, will start at 9:50 Moscow time.
Due to the introduction of restrictive measures by the United States against the Moscow Exchange Group, on-exchange trading and settlements of deliverable instruments in US dollars and euros are suspended. However, trading in all other exchange segments and instruments in rubles and other currencies will be conducted as normal. US dollars and euros will still be traded in the over-the-counter market.