Situation in FX market stabilises in July
The fluctuations of the ruble against the main foreign currencies were moderate. As of the end of the month, the exchange rate slightly declined. By the end of July, foreign exchange spreads contracted to the level of January—May 2024.
Yields on federal government bonds (OFZ) were rising in July amid the monetary policy tightening. On average, OFZ yields went up by 51 basis points along the curve. In the conditions of higher interest rates in the economy, the negative revaluation of the Russian banking sector’s ruble bond portfolio increased by ₽486.4 billion from the beginning of 2024.
The MOEX Russia Index had been dropping for the third consecutive month, losing 6.7%. The reduction was attributed to persistent inflationary pressure and dividend payments made by a number of large Russian companies.
More details are available in the new issue of the Financial Market Risks Review.