**RUSSIAN ECONOMICAND FINANCIAL DEVELOPMENTS**

**FOR WEEK ENDINGJANUARY 14, 2000**

** **

19 JAN 00

SOURCE: US EMBASSYMOSCOW

 

----------------------------

FINANCIAL MARKETINDICATORS

---------------------------

 

1. FINANCIAL MARKETTRENDS

 

THE STOCK MARKETCONTINUED TO HIT NEW HIGHS IN THE

BEGINNING OF2000.  RTS INDEX REACHED THE LEVELSOF

JUNE 1998 IN REALTERMS ACCOMPANIED BY VERY HIGH

VOLUMES.  RTS INDEX INCREASED BY 9.27 PERCENT INREAL

TERMS FOR THE WEEK.

 

INTERNATIONALRESERVES DECREASED BY USD200 MILLION AND

TOTALED USD12.3BILLION DURING THE FIRST WEEK OF 2000.

THE MONETARY BASEWENT UP AGAIN BY 1.05 PERCENT OR R3.2

BILLION, TO REACHR309.2 BILLION.

 

---------------------------------------------

2. ECONOMIC ANDFINANCIAL MARKET DEVELOPMENTS

---------------------------------------------

 

--  ACCORDING TO IMF DATA, RUSSIA HASREDUCED IT'S DEBT

TO THE IMF BY USD3.6BILLION IN 1999.  CURRENTLY, THE

TOTAL AMOUNT RUSSIAOWES TO THE IMF IS USD15.2 BILLION.

 

-- RUSSIANGOVERNMENT HAS SET THE AVERAGE MONTHLY WAGE

TO, EQUAL R1175 INTHE FORTH QUARTER FOR THE PURPOSES OF

THE PENSIONESTIMATIONS STARTING FROM FEBRUARY 2000.

 

--  ACCORDING TO THE TAX MINISTRY, TOTALTAX

COLLECTIONS BY THETAX MINISTRY WERE R377.4 BILLION IN

1999, 2.4 TIMESHIGHER THAN A YEAR BEFORE.  THIS IS40

PERCENT HIGHER THANTHE TARGETED R269.3 BILLION.

ACCORDING TO THE TAXMINISTRY, AROUND 4 MILLION PEOPLE

WILL SUBMIT TAXDECLARATIONS FOR THE YEAR 1999.

 

--  FOR THE PURPOSE OF COVERING THE BUDGETDEFICIT, THE

MONEY EMISSION MAYTAKE PLACE IN MARCH OF 2000.

ACCORDING TO THEDIRECTOR OF THE INSTITUTE OF THE

PROBLEMS OF THEGLOBALIZATION, MIKHAIL DELYAGIN, THIS

EMISSION MAY TOTALNO LESS THAN USD1.5 BILLION IN THE

RUBLE EQUIVALENT.

 

-- ACCORDING TO THEACTING PRESIDENT VLADIMIR PUTIN,

PENSIONS WILL BE INCREASEDBY 20 PERCENT STARTING FROM

FEBRUARY 1,2000.  EARLIER IN OCTOBER 1999,GOVERNMENT

ANNOUNCED 12-PERCENTPENSION INCREASE IN FEBRUARY.

PENSION WILL BEINCREASED TO UP TO R650

 

-- ACCORDING TO THEFIRST DEPUTY PRIME MINISTER MIKHAIL

KASIANOV, THE FEDERALGOVERNMENT TRANSFERS R90 MILLION

TO CHECHNYA EACHMONTH TO PAY PENSIONS AND WAGES IN

THIS REGION.  THE FINANCE MINISTRY AND MINISTRY OF

ECONOMY ARECURRENTLY WORKING ON THE PROGRAM OF

REVIVING THE ECONOMYOF CHECHNYA.  KASIANOV ALSO

MENTIONED THAT THEREIS A STRICT CONTROL OVER THE

DISTRIBUTION OF THEFEDERAL RESOURCES IN CHECHNYA.

 

--------------

3.  BANK ALERT

--------------

 

-- THE CENTRAL BANKOF RUSSIA (CBR) REPORTED RUSSIA'S

GOLD AND CURRENCYRESERVES AT USD12.3 BILLION ON

JANUARY 7, COMPAREDWITH USD12.5 AS OF DECEMBER 31,

1999.

 

-- THE CBR HASINCREASED ITS MANDATORY RESERVE FUND

REQUIREMENT FORCOMMERCIAL BANKS EFFECTIVE JANUARY 1.

COMMERCIAL BANKS AREREQUIRED TO SET ASIDE 10 PERCENT

INSTEAD OF 8.5PERCENT FOR CORPORATE ACCOUNTS IN RUBLES

AND CORPORATE ANDPERSONAL ACCOUNTS IN FOREIGN CURRENCY

AND 7 PERCENTINSTEAD OF 5.5 PERCENT FOR PERSONAL CASH

DEPOSITS ON RUBLEACCOUNTS.  THE DEADLINE FOR THE

TRANSFER OFADDITIONAL FUNDS INTO RESERVE FUND WAS SET

FOR JANUARY 18.

 

-- CBR CHAIRMANVIKTOR GERASHCHENKO WANTS TO RAISE THE

MANDATORY HARDCURRENCY SALE OF EXPORT EARNINGS FROM

THE PRESENT 75PERCENT TO 100 PERCENT TO STRENGTHEN

STATE REGULATION OFTHE HARD CURRENCY MARKET.  THE CBR

CHIEF SENT A LETTERTO THE PRIME MINISTER IN LATE

DECEMBER WHERE HE PREDICTEDTHAT THE SITUATION ON THE

CURRENCY MARKETWOULD BECOME COMPLICATED IF ADDITIONAL

MEASURES WERE NOTTAKEN.  GERASHCHENKO NOTED THAT THE

COMPLICATIONS COULDALREADY AT THE BEGINNING OF THE

YEAR LEAD TO A LOSSOF AROUND USD1.5 BILLION IN

SEASONAL EXPORTEARNINGS.  ACTING PRESIDENT ANDPRIME

MINISTER VLADIMIRPUTIN SPOKE OUT IN FAVOR OF THE

PROPOSED MEASURE BUTSTRESSED THAT IT MAY NOT BE

INTRODUCED SOONERTHAN Q3.

 

-- THE CBR HASTOUGHENED MEASURES FOR RESIDENTS BUYING

HARD CURRENCY TO PAYFOR SERVICES AND SALARIES.  NOW

COMPANIES BUYINGOVER USD10 THOUSAND IN FOREIGN

CURRENCY TO PAY FORWORK, SERVICES AND INTELLECTUAL

ACTIVITY MUSTPRESENT PERMISSION FROM RUSSIA'S FEDERAL

SERVICE FOR CURRENCYAND EXPORT CONTROL.  THE LIST OF

SERVICES INCLUDESTHAT OF HOTELS, COMPUTER TECHNOLOGY,

EDUCATION,HEALTHCARE, TOURISM AND LEISURE. THE CBR'S

NEW RULING DOES NOTEXTEND TO BANKS BUYING FOREIGN

CURRENCY WITH THEIROWN FUNDS TO PAY FOR WORK, SERVICES

OF INTELLECTUALACTIVITY.

 

-- TOTAL SAVINGS BYRUSSIAN CITIZENS IN BANK ACCOUNTS,

SECURITIES AND CASHAMOUNTED TO R432.2 BILLION AS OF

DECEMBER 1, 1999,COMPARED WITH R424.5 BILLION AT THE

START OF NOVEMBER1999 AND R306.4 BILLION AT THE START

OF DECEMBER 1998,ACCORDING TO THE RUSSIAN STATE

STATISTICSCOMMITTEE. BANK ACCOUNTS CONSTITUTED 46.9

PERCENT OF THE ABOVETOTAL, SECURITIES AND CASH

CONSTITUTED 19.5PERCENT AND 33.6 PERCENT,

RESPECTIVELY.

 

-- THIS COMING WEEKTHE AGENCY FOR RESTRUCTURING CREDIT

ORGANIZATIONS (ARCO)WILL TRANSFER THE FIRST R20-

MILLION TRANCHE OFTHE R400-MILLION TOTAL ALLOCATED FOR

REPAYMENTS TO SMALLCREDITORS OF SBS-AGRO.

 

-- BANK AUSTRIACREDITANSTALT (RUSSIA) DOUBLED ITS

OPERATING VOLUMESLAST YEAR.  THE INCREASED VOLUMEWAS

A RESULT OF GREATERBANK ACTIVITY ON THE MARKET AND AN

EXPANDING CLIENTBASE.  BANK AUSTRIA IS THE FIRST

FOREIGN BANK TO OPENTHREE BRANCHES IN MOSCOW.  IT

OFFERS CLIENTS VISADEBIT CARDS, ATM SERVICES AND

DIRECT DEPOSIT OFSALARIES.  BANK AUSTRIACREDITANSTALT

(MOSCOW) WAS RANKED37TH ON THE INTERFAX-100 LIST OF

MAJOR RUSSIAN BANKS,BASED ON FIGURES THROUGH THE FIRST

NINE MONTHS OF1999.  PAID-IN CHARTER CAPITALTOTALS

R1.77 BILLION.

 

---------

4. PRICES

---------

 

ACCORDING TOGOSKOMSTAT, INFLATION DURING THE FIRST 10

DAYS OF JANUARYTOTALED 1.1 PERCENT.

 

--------------------------

5. FINANCIAL MARKETTABLES

--------------------------

 

-------------------------------------------------------

A. THE RUBLE FIRMSUP BY THE END OF THE WEEK, STILL 6

PERCENT DOWN AGAINSTTHE DOLLAR SINCE THE START OF 2000

-------------------------------------------------------

AT THE START OF2000, NOT SURPRISINGLY, THE RUBLE SWOOPED

DOWN.  CBR'S INTERVENTIONS DURING THE FIRSTTWO TRADING

DAYS AT MICEX(JANUARY 5 AND 6) APPEARED TO BE

INEFFICIENT AND ONJANUARY 11 THE CBR BOARD OF DIRECTORS

DECIDED TO INCREASERESERVE REQUIREMENTS (SEE BANK

ALERT).  THE STEP WHICH WAS EXPECTED TO VACUUMUP SOME

R20 BILLION FROMRECORD HIGH R88 BILLION IN CORRESPONDENT

ACCOUNTS WITH THECBR BROUGHT IMMEDIATE RESULT. ALREADY

ON JANUARY 12, ASTHE CBR DECISION BECAME PUBLIC BETWEEN

THE TWO MICEXSESSIONS, THE "TOM" RUBLE CLOSED 1452

POINTS UP FROM THE"TOD" AVERAGE.  AFTERTHAT, THE RUBLE

WENT ON SLOWLY BUTSTEADILY FIRMING.  NEVERTHELESS,THE

"TOD"RUBLE CLOSED FRIDAY 5.82 PERCENT DOWN FROM THE

RESULT OF THE LASTSESSION IN 1999.  WHILE AVERAGE

MORNING SESSIONTRADE VOLUME THIS WEEK WAS PRETTY HIGH AT

USD190.6 MILLION,AVERAGE AFTERNOON SESSION VOLUME WAS A

RECORD HIGH USD165.1MILLION.  ACCORDING TO SOME MARKET

ANALYSTS, IN THEVERY SHORT RUN THE RUBLE WILL LIKELY

REMAIN STABLE OREVEN, UNTIL THE FIRST WEEK OF FEBRUARY,

SLIGHTLY APPRECIATE.

 

TABLE 1A:  RUBLE RATES -- MICEX SELT TRADING (NOTE1)

 

 ------------------------------------------------

           USD-TOD   USD-TOD   USD-TOM   USD-TOM

   DATE     AVERAGE   VOLUME  AVERAGE   VOLUME

            PRICE   (USD MN)    PRICE   (USD MN)

 ------------------------------------------------

 01/10/00  27.7349     142.51  27.9829  152.30

 01/11/00  28.4365     259.30  28.7025  272.97

 01/12/00  28.8462     212.00  28.6990  115.69

 01/13/00  28.6485     210.93  28.6847  119.58

 01/14/00  28.5748     127.55     NO TRADING

 

TABLE 1B:  RUBLE RATES -- CASH RATES AT EXCHANGEPOINTS

(RUBLES PER USD)(NOTE 2)

 -------------------------------------------------

                    PRCT CHNG           PRCTCHNG

   DATE     AVERAGE   AGAINST  AVERAGE   AGAINST

             BUY    WEEKAGO    SELL    WEEK AGO

 -------------------------------------------------

 01/10/00   27.66         N/A   28.11         N/A

 01/11/00   28.27         N/A   29.34         N/A

 01/12/00   28.46         N/A   28.96         N/A

 01/13/00   28.39        4.18   28.83        3.97

 01/14/00   28.38        3.58   28.68        3.17

 

TABLE IC:  RUBLE RATES-- CBR OFFICIAL EXCHANGERATE

 -----------------------------------------

                    PRCT CHNG  PRCT CHNG

   DATE    OFFICIAL   AGAINST    AGAINST

            RATE     WEEKAGO   01/01/00

 -----------------------------------------

 01/10/00  27.2300        0.85       0.85

 01/11/00  27.7300        2.70       2.70

 01/12/00  28.4400        5.33       5.33

 01/13/00  28.8500        7.25       6.85

 01/14/00  28.6500        5.21       6.11

 

---------------------

B. OFZ MARKET

---------------------

 

PRICES ON THESECONDARY GKO/OFZ MARKET WERE GROWING

ALMOST ALL WEEK WITHSMALL NEGATIVE PRICE CORRECTIONS

WHICH TOOK PLACE ONIN THE BEGINNING OF THE WEEK.

LATER ON THE WEEKTHE POSITIVE TREND PICKED UP AND THE

YIELDS OF THE LONGEROFZ YIELDS WENT DOWN TO AS LOW AS

55-59 PERCENTP.A.  THE SHORTEST-TERM OFZ ISSUENUMBER

O22 WHICH MATURES ONFEB.23, 2000 HAD YIELD OF 23.1

PERCENT P.A. AT THEEND OF THE WEEK.  THE TRADE

ACTIVITY WASMODERATE THROUGHOUT THE WEEK.

------------------------------------

C. SHORT-TERMINTERBANK SHARPLY DOWN

------------------------------------

 

SHORT-INTERBANKRUBLE LOAN RATES WENT DOWN IN THE

BEGINNING OF JANUARYAS BANKS HAVE FOUND THEMSELVES

WITH THE STOCK OFTHE UNUSED RUBLES ON THEIR

CORRESPONDENTACCOUNTS AT THE CBR.  BALANCES ONBANKS'

CORRESPONDENTACCOUNTS HIT UNPRECEDENTED HIGH LEVELS,

REACHING R88.3BILLION ON JAN.11, 2000.  TO LOWERTHE

RUBLE LIQUIDITY ONTHE MARKET, THE CBR HAD TO IMPLEMENT

THE NEW HIGHEROBLIGATORY BANK RESERVES RATE WHICH

LOWERED THE AMOUNTOF SPARE RUBLES IN THE BANKING

SYSTEM.

 

 --------------------------

 TABLE 4: INTERBANK CREDIT

 --------------------------

 

  DATE                     PERIOD (IN DAYS)

  -----------------------------------------------------

                   1     7     14     30     60     90

  -----------------------------------------------------

 

 JAN 05   MIBID  11.7   ---   ---    ---    ---    ---

          MIBOR   18.3   ---  ---    ---    ---    ---

 

 JAN 06   MIBID  11.0   08.0   10.0   55.0  17.0  20.0

          MIBOR   21.5   30.0  32.0   42.0   43.0  45.0

 

 JAN 10   MIBID  08.6   08.0   10.0   15.0  17.0  20.0

          MIBOR   17.2   30.0  32.0   42.0   43.0  45.0

 

 JAN 11   MIBID  05.6   05.0   07.0   13.0  15.0  20.0

          MIBOR   11.2   12.0  15.0   23.0   27.0  35.0

 

 JAN 12   MIBID  05.2   05.0   07.0   13.0  15.0  20.0

          MIBOR   10.4   12.0  15.0   23.0   27.0  35.0

 

 JAN 13   MIBID  06.2   04.0   07.0   10.0  12.0  17.0

          MIBOR   11.0   10.0  17.0   20.0   25.0  35.0

 

 JAN 14   MIBID  04.3   04.0   07.0   10.0  12.0  17.0

          MIBOR   08.8   10.0  17.0   20.0   25.0  35.0

 

---------------------

D. STOCK MARKETRALLY

---------------------

 

THE STOCK MARKETRALLY WHICH BEGAN IN DECEMBER OF 1999

CONTINUED THROUGHTHE FIRST TWO WEEKS OF THIS MONTH EVEN

AT A FASTERPACE.  NON-RESIDENTS WERE VERYACTIVE

THROUGHOUT THEWEEK.  THE SECOND-TIER STOCK WAS INTHE

DEMAND ALSO.  LEADERS OF THE WEEK WERE THE"ENERGO"

SHARES. AFTER THESLIGHT DECREASE IN THE BEGINNING OF

THE WEEK WHICH ISEXPLAINED BY THE TECHNICAL CORRECTIONS

AS A RESULT OF THEPROFIT TAKING, THE MARKET BEGAN TO

GROW AGAIN CLIMBINGTO THE HIGHEST LEVELS ON FRIDAY.

TRADE VOLUMES WEREVERY HEALTHY THROUGHOUT THE WEEK

REACHING MAXIMUM OFUSD40 MILLION ON FRIDAY.  THEHIGHER

VOLUME WAS LASTWITNESSED BACK IN JULY 22, 1998.  THIS

DAY, THE RTS INDEXREACHED THE HIGHEST LEVEL OF 2O2.7

SINCE JUNE1998.  FOR THE WEEK THE RTS INDEXWENT UP BY

9.27 PERCENT IN REALTERMS AND SINCE THE BEGINNING OF

THE YEAR IT GAINED15.7 PERCENT IN REAL TERMS.

 

--------------------------

TABLE 5: RTS STOCKINDICES

--------------------------

                                               DOLLAR

 DATE    RTS INDEX        PERCENT CHANGE      ADJUSTED

           (R)      NOMINAL (RUB) REAL (USD)

 JAN 05 1086.88          2.14       2.14    179.01

 JAN 06  1122.21          3.25       3.64    185.52

 JAN 10  1177.17          4.90       3.63    192.25

 JAN 11  1136.93         -3.42       -5.16     182.33

 JAN 12  1210.02          6.43       3.77    189.20

 JAN 13  1270.66          5.01       3.52     195.86

 JAN 14  1305.96          2.78       3.50    202.71

 

 -------------------------

 E. INTERNATIONAL RESERVES

 -------------------------

INTERNATIONALRESERVES OF THE CENTRAL BANK AND THE

FINANCE MINISTRYKEPT FALLING FOR THE LAST TWO WEEKS

AND TOTALED USD12.3MILLION LAST WEEK, WHICH IS STILL

0.82 PERCENT ABOVEOF THE LEVEL OF JANUARY, 1999.  FOR

THE YEAR, THEINTERNATIONAL RESERVES INCREASED BY 1.9

PERCENT.  THE CURRENCY RESERVES INCREASED BY 8.4

PERCENT IN 1999 ANDTOTALED USD8.5 BILLION, AT THE MEAN

TIME GOLD RESERVESDECREASED BY 9.6 PERCENT AND TOTALED

USD4 BILLION.  IN THE STRUCTURE OF THE INTERNATIONAL

RESERVES, CURRENCYRESERVES TOTAL 67.9 PERCENT (63.8

PERCENT IN 1998) ANDGOLD RESERVES TOTALED 32.1 PERCENT

(36.2 PERCENT IN1998).

 

-----------------------------------------

TABLE 6:INTERNATIONAL RESERVES (NOTE 5)

-----------------------------------------

 

INTERNATIONAL  BLN USD  PERCENT CHG PERCENT CHG

RESERVES                 PREV WK     01.01.00

 

01.07.00        12.3     -1.6        -00.0

12.31.99        12.5     -1.6         02.5(PRNT CHNG01.01.99

12.24.99        12.7      5.8         04.1(PRNT CHNG01.01.99

12.17.99        12.0      1.7        -01.6(PRNT CHNG 01.01.99

12.10.99        11.8      2.6        -03.3(PRNT CHNG 01.01.99

 

----------------

F. MONETARY BASE

----------------

 

MONETARY BASECONTINUED TO GROW FOR THE FIFTH WEEK IN A

ROW.  DURING THE FIRST TEN DAYS OF 2000, ITGREW BY

R3.2 BILLION ANDTOTALED R309.2 BILLION. THE WEEK

BEFORE THE (AT THEEND OF DECEMBER 1999) BASE MONEY

INCREASED ANUNPRECEDENTED HIGH 5.81 PERCENT.

 

--------------------------------

TABLE 7: MONETARYBASE (NOTE 6)

--------------------------------

 

MONETARY   BLN RUBLES    PRCT CHNG FROM       PRCT CHNGFROM

BASE                       PREV. WEEK        PREV. 4 WK AVG

 

01.10.00     309.2           1.05                 7.3

12.27.99     306.0           5.81                 9.5

12.20.99     289.2           1.58                 4.7

12.13.99     284.7           4.44                 3.8

12.06.99     272.6           0.33                -1.1

12.29.99     271.7           -0.60                -1.0

--------------------------

G. CORRESPONDENTACCOUNTS

--------------------------

 

-------------------------------------------

TABLE 8: BALANCES ONCORRESPONDENT ACCOUNTS

-------------------------------------------

 

       DATE                BALANCE (BLN RUB)

      01.10.99                      -

      01.11.99                    88.296

      01.12.99                    81.484

      01.13.99                     81.586

      01.14.99                    74.647

 

------------------

EXPLANATORY NOTES

------------------

 

1. EXCHANGE RATES:SELT - "SYSTEM OF ELECTRONIC LOT

(CURRENCY)TRADING" - A COMPUTER-BASED OTC-TYPE TRADING

SYSTEM ORGANIZED BYTHE MOSCOW INTERBANK CURRENCY

EXCHANGE(MICEX).  USD-TOD PRICE IS THEPRICE OF THE

DOLLAR WITH THE SAMEDAY DELIVERY.  USD-TOM PRICE IS

THE PRICE OF THEDOLLAR WITH DELIVERY ON THE NEXT DAY.

MINIMUM LOT SIZE FOREACH OF THE DOLLAR INSTRUMENTS IS

USD1OO,OOO.  AVERAGE PRICE IS QUOTED AS THE WEIGHTED

AVERAGE OF ALL THEBIDS AND OFFERS ENTERED INTO THE

SYSTEM BY VARIOUSBANKS.

 

2  AVERAGE CASH RATES ARE QUOTED ASCALCULATED BY THE

INTER-LINEINFORMATION AGENCY THAT PROCESSES DATA FROM

OVER 500 EXCHANGEPOINTS IN THE CITY OF MOSCOW.

 

3  INTEREST RATES: THE TABLE PROVIDESMOSCOW INTERBANK

BID (MIBID) ANDMOSCOW INTERBANK OFFERED RATE (MIBOR)

B ANNUALIZED AVERAGE BID AND OFFER RATES ONSHORT-TERM

RUBLE LOANS BETWEENCOMMERCIAL BANKS.

 

4  STOCK INDICES: THE RTS INDEX, IS THEONLY OFFICIAL

INDICATOR OF THERUSSIAN TRADING SYSTEM.  IT IS

CIRCULATED EVERY 30MINUTES OF THE RTS TRADE SESSION,

STARTING FROM12:00.  IT COMPRISES 60 SHARES OF35

LEADINGCOMPANIES.  THIS SHARES AREINCLUDED IN SO-

CALLED CATEGORY"A" LISTING.  THE INDEXINDICATES OVER-

THE-COUNTER STOCKPRICES.  THE INDEX REPRESENTS THE

RATIO OF THE TOTALMARKET CAPITALIZATION OF THE SHARES

OF THE COMPANIESSELECTED FOR THE INDEX TO THE TOTAL

MARKETCAPITALIZATION OF THE SAME SHARES AS OF THE

INITIAL DATEMULTIPLIED BY THE INDEX VALUE AS OF THE

INITIAL DATE (31DECEMBER, 1997) USING A BASE OF 100

BEGINNING SEPTEMBER1, 1995.  THE RUBLE-ADJUSTED INDEX

IN A DERIVATIVE OFTHE MAIN DOLLAR INDEX, USING THE

SAME BASE.

 

5  INTERNATIONAL RESERVES OF THE RUSSIANFEDERATION

REPRESENT THE AMOUNTOF RESERVE ASSETS OF THE BANK OF

RUSSIA AND FINANCEMINISTRY.  THOSE RESERVE ASSETS ARE

COMPRISED OFMONETARY GOLD, SPECIAL DRAWING RIGHTS, THE

RESERVE POSITION INTHE IMF AND OTHER LIQUID FOREIGN

CURRENCYASSETS.  THE LATTER INCLUDE SHORT-TERM

DEPOSITS INNONRESIDENT AND RESIDENT BANKS, BALANCES IN

CURRENT ACCOUNTS,FOREIGN GOVERNMENT SECURITIES, REPO

AGREEMENTS WITHTHESE SECURITIES MADE WITH

NONRESIDENTS, ANDOTHER LIQUID ASSETS (ACCRUED INTEREST

ON THESE ASSETS ISNOT INCLUDED).  MONETARY GOLD IS

EVALUATED AT USD300PER TROY OZ.  FOREIGN CURRENCY

ASSETS ARE CONVERTEDINTO US DOLLARS ON THE BASIS OF

THE CROSS RATES OFFOREIGN CURRENCIES TO THE USD,

CALCULATED USING THEOFFICIAL RATES OF THE RUBLE TO

THESE FOREIGNCURRENCIES, SET BY THE CBR.

 

6. MONETARY BASE(ML) IS COMPRISED OF CASH AND RESERVES

OF COMMERCIAL BANKSON DEPOSIT IN THE CBR.  IT IS THE

BASIC PART OF THEMONEY SUPPLY (M2).

 

7. LOMBARD CREDITS,DISTRIBUTED THROUGH AUCTIONS, ARE

AIMED TO PROVIDE THELIQUIDITY TO THE BANKING SECTOR.

THESE CREDITS AREEXTENDED TO BANKS ON THE BASIS OF

COLLATERAL (T-BILLS,OR MORE RECENTLY, SHARES).