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.
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.