Russia’s international reserves dropped by $26.9 billion in June, falling 3.61% to $720.4 billion as of July 1, according to data released by the Central Bank of Russia.
The decline marks a notable reduction in the nation’s foreign currency and gold holdings, reflecting continued outflows or asset revaluations during the month.
Recent data from the Ministry of Economic Development showed annual consumer price inflation reaching 6% by late June, a figure that sits below the central bank’s 7.
The reserve drawdown occurs against a backdrop of stabilizing domestic price pressures.
Recent data from the Ministry of Economic Development showed annual consumer price inflation reaching 6% by late June, a figure that sits below the central bank’s 7.5% target.
This moderation in inflation has allowed for a gradual easing in monetary conditions, with the average maximum interest rate on ruble deposits at the country’s ten largest banks slipping to 12.76% per annum in late June, down from 12.97% earlier in the month.
The combination of falling reserves and cooling inflation suggests the central bank is navigating a delicate balance between maintaining external buffers and managing domestic liquidity.