Page 72 - RusRPTJul20

While the significance of the MosPrime rate has declined in recent years, it still plays a central role in derivatives trading. For example, the MosPrime rate is used in fixing the rates of most ruble interest rate swaps. The CBR continues to publish also MIACR interbank lending rates, which are based on actual rates in the whole banking sector.
7.1​ FX issues
In June analysts expect much lower regular FX sales by the CBR under the budget rule ​(RUB35-40bn in June, or $0.5-0.6bn, compared to RUB193bn/$2.97bn in May) on the back of a strong oil price rebound by 40% m/m in May to $35 per bbl Brent. Analysts do not expect that the regulator will resume additional FX sales using money from the recent Sberbank deal that were stopped on 12 May when oil price got back above $25 per bbl. Since the beginning of April, the RUB has appreciated by 10% against $ and is now trading close to 70 returning to the levels seen in late February-early March when the oil price was higher.
From March to early June, the Central Bank sold about $6.2bn in the interests of the Ministry of Finance under the budget rule, ​according to the Bank of Russia. Such sales should be made at the expense of previously acquired currency and only then - at the expense of the liquid resources of the NWF, follows from the rules of the Ministry of Finance.
As of June 1, the volume of liquid assets of the NWF amounted to almost $116bn, the Ministry of Finance said on June 8. In addition, the Ministry of Finance had about $10bn of currency in accounts with the Bank of Russia as of the beginning of March, which it will transfer to the NWF next year.
72​ RUSSIA Country Report​ July 2020 ​ ​www.intellinews.com