The Lastest Macroeconomic News
10.09.2022 17:41 Russia To Legalize Use Of Cryptocurrency In International Trade
The Bank of Russia and the country`s Ministry of Finance have reconsidered their positions toward cryptocurrency, acknowledging it to be necessary to legalize the use of cryptocurrencies in cross-border settlements, per a report by local news outlet TASS. According to TASS, the two government bodies have agreed that “it is impossible” to continue without enabling cryptocurrency as a legal payment method for international trade. The move comes as Russia dabbles on how to best regulate the Bitcoin and cryptocurrency markets. Swamped in Western sanctions, the world`s largest country has sought alternatives to the U.S. dollar so as to guarantee the efficient trade of its commodities.
02.09.2022 14:59 Russia`s GDP contraction slows to 4.3% in July
Russia`s GDP contracted by 4.3% year on year in July 2022, moderating the decline of 4.9% y/y seen in June, according to the latest data from the Ministry of Economic Development. To remind, for 2Q22 overall GDP contracted by 4%. As followed by bne IntelliNews, GDP forecasts for Russia hit by Western sanctions have been improved across the board. The International Monetary Fund (IMF) said Russia`s economy is doing better than expected, upgrading its forecast for the contraction anticipated this year to -6% from -8%. Reportedly, the Ministry of Economic Development is preparing a revised macroeconomic forecast for 2022, upgrading the GDP decline expectations to 4.2% from the previously forecast 7.8% contraction.
01.09.2022 13:27 The Russian version of the InstaJet platform attracted more than 800 bloggers in the first 72 hours of work
Three days after the announcement of the launch of the Russian-language version of Instaget, hundreds of Russian-speaking Instagram bloggers registered on the platform. Thus, the audience showed significant interest in the native integration service, and the registration rates in the first hours even exceeded expectations.
21.08.2022 11:45 Russian inflation falls again to 14.9% in August, fears of a deflationary spiral grow
Russia`s inflation fell 0.13% week on week for the period 9-15 August to an annualised rate of 14.9%, RosStat reported on August 18. Inflation remains high but is being driven lower by a precipitous fall in food prices that has led some economists to worry that Russia runs the danger of falling into a deflationary spiral that could last for years. The imposition of a “massive package” of sanctions by the West has slowed growth, resulting in falling demand. If the population gets to the point where inflation expectations turn negative and they expect prices to fall in the future, then that has the effect of reducing demand further and those expectations become a self-fulfilling prophecy. Deflationary spirals are destructive and can last for years.
14.08.2022 12:24 Annual inflation in Russia fell to 15.1% in July
Annual inflation in Russia fell to 15.1% in July 2022 from 15.9% in the previous month and below market expectations of 15.3%, Rosstat said on August 10. Currently, Russia is the only country in Europe where inflation is coming down thanks to decisive action by the Central Bank of Russia (CBR). The bank urgently raised the rate to 20% on February 28. As inflationary pressures eased, the CBR cut rates four times to 8%, down from 8.5% at the beginning of the year. However, not all the news was so good, as inflation began to decline also due to deep deflationary pressure in some categories of fruits and vegetables. This led economists to say that inflation will start to rise again with the onset of autumn.
08.08.2022 21:58 Bank CentroCredit announces connection to CIPS
Recently, CentroCredit Bank announced its connection to the Chinese settlement system CIPS (Cross-border Interbank Payment System). This was done so that the bank could continue to support its clients working with partners from China in export-import transactions. "In the spring of this year, we connected to the Chinese settlement system CIPS," Andrey Tarasov, Chairman of the Board of Directors of CentroCredit Bank, told reporters.
04.08.2022 15:18 Chairman of the Board of Directors of Centrocredit Bank spoke about his collection of securities
Antique securities, what are they? Andrey Tarasov, the head of the Centrocredit Bank, told about this in an interview with journalists, whose collection over the past twenty years has become one of the largest in Russia. According to A. Tarasov, his passion for pre-revolutionary securities began in 2000, when his wife gave him a share of the Theological Mining Society, issued in 1913. He and his partners then dealt with the securities of enterprises in the Urals. “It seemed to me that this is a serious and noble cause,” the banker said. Since then, he has devoted part of his time to the creation of the return to Russia of these historical and cultural values and the creation of a collection.
18.07.2022 20:19 Bank Centrocredit issued the first bank guarantee in yuan
In July, CentroCredit Bank issued the first yuan-denominated bank guarantee, equivalent to almost 400 million rubles, for a deal to supply raw materials to be used in the production process at one of Russia`s largest oil refineries. “Thus, - noted Andrey Tarasov, - “our bank`s client, an importer of chemical products from China and Southeast Asia, will soon be able to supply the customer with a catalytic system necessary for the production of high value-added products.”
12.07.2022 19:05 Inflation in Russia fell in June for the third month in a row
Russia`s consumer price inflation (CPI) fell for the third month in a row to 15.9% year on year in June, down from a peak of 17.8% in April, RosStat reported on July 8. Inflation was rising steadily following the start of the coronavirus (COVID-19) pandemic, driven up by disrupted supply chains and soaring food prices. However, inflation took another step up in March. The fast action by the Central Bank of Russia (CBR) and an emergency doubling of rates to 20% on February 28 seems to have been effective and quickly quashed the inflationary pressures from the steep devaluation of ruble. Inflation expectations amongst the Russian population have been falling quickly since then, although remain elevated. The receding inflationary pressure in the last months has allowed the CBR to cut rates four times in three months to bring them back down to the level of 9.5% on June 10. More cuts are anticipated and the CBR predicts that inflation will return to its target level of 4% in 2023.
30.06.2022 07:21 Centrocredit Bank will not pay dividends for 2021
The General Meeting of Shareholders of Centrocredit Bank was held in Moscow on June 28, 2022. During the meeting, the shareholders approved the main performance indicators of the bank in the reporting year, approved the profit and loss statement, the balance sheet, as well as the report on the results of financial and economic activities. It was noted that at the end of 2021, the net profit of the credit institution amounted to 1.8 billion rubles. An important decision of the shareholders was not to direct part of the profits of Centrocredit Bank, formed at the end of 2021, to the payment of dividends to shareholders. The decision was dictated by the recent corresponding recommendation of the Central Bank of the Russian Federation, issued against the backdrop of changed macroeconomic conditions.