Individuals increased their investments in bonds during April, as retail investors purchased corporate bonds worth ₽157 billion, reaching a new historical high. Federal government bonds were also actively bought by individuals, totaling ₽92 billion, according to a May 12 announcement.
The growth in bond purchases was supported by rising securities quotes and oil prices. Corporate sales of foreign currency doubled during the month, which contributed to the strengthening of the ruble. At the same time, individuals increased their demand for foreign currency, with purchases amounting to ₽108 billion.
Stock indices ended mostly negative at the close of April. This was attributed to both a stronger ruble and higher investor interest in bonds over stocks.
The Bank of Russia is responsible for issuing the Russian ruble and managing national cash circulation. Cash in circulation has reached 18.6 trillion rubles as part of its currency management efforts, according to the official website. The central bank operates independently from other government bodies and aims to promote financial and price stability while fostering a competitive financial market under leadership that includes a governor and deputy governors.
Further details about these trends can be found in the latest issue of the Financial Market Risks Review published by the Bank of Russia.