SOVEREIGN ECONOMY: TOP EVENTS OF THE WEEK
The Central Bank has decided to raise the key rate from 12% to 13% at the board of directors meeting. The regulator explained this decision by the high inflationary risks. Inflationary pressure in the Russian economy remains high. As of September 11, annual inflation rose to 5.5% after 4.3% in July and 5.2% in August. In connection with this, the inflation forecast has been raised to 6-7% by the end of the year.
The Russian government has introduced temporary restrictions on the export of automotive gasoline and diesel fuel. The Ministry of Fuel and Energy of Russia emphasized that the fuel export restrictions are temporary. The decision was made to stabilize fuel prices in the domestic market. According to Rosstat data, retail prices for gasoline and diesel fuel have increased by 9.4% from the beginning of the year to September 18.
Africa has drastically reduced the use of the ruble in calculations. According to the Central Bank of Russia statistics, African countries have almost completely stopped settling exports in rubles from Russia in July 2023. The share of the ruble in calculations has dropped to 8.5% (its share in February 2023 was 82.4%). Interestingly, the most significant reduction occurred against the ruble's depreciation when the dollar crossed the 90-ruble mark in July. Egypt has refused Russian wheat.
Egypt will purchase nearly half a million tons of wheat from France and Bulgaria instead of Russian grain. The deal was abandoned due to an unofficial minimum price level for wheat that Moscow attempted to establish. It compels some traders to review or even cancel already concluded transactions.
Putin urges belief in economic recovery after sanctions. "In general, we can say that the stage of Russian economic recovery is complete. We have endured unprecedented external pressure, the sanction pressure of some ruling elites in the so-called Western bloc," Putin stated at a meeting on the formation of the federal budget 2024.