The Central Bank was prepared for crisis
Having shifted reserves in short and nizkoriskovye actives
Yesterday the Bank of Russia has published results on management of reserve currency actives from October, 1st, till September, 30th last year according to which the bank for a year in home market has got currencies on 126 mlrd dollars In the third quarter of last year of the Central Bank against liquidity crisis in the world has shifted a part of actives in short-term papers, and also has increased a share of tools with high credit ratings.
According to “ to the review of activity of Bank of Russia on management of reserve currency actives “ Central Bank actives in reserve currencies have increased on 154 mlrd dollars the Principal cause of growth of actives there was a purchase of the Central Bank of currency in home market on 126,1 mlrd dollars Besides, in the Central Bank third quarter 2007 has carried out payments on the instructions of clients of bank on 6 mlrd dollars According to the chief of analytical department of exchequer VTB Nikolay Kascheyev, the major customer of Bank of Russia is the Ministry of Finance which, in particular, operates Stabfondom. Group economist IK “ the Three Dialogue “ Evgenie Gavrilenkov also considers that payments of clients of the Central Bank can mean currency sale in a foreign market with a view of management of state funds.
the operational portfolio of actives in reserve currencies has grown with 186,7 mlrd to 257 mlrd dollars, and the investment portfolio has increased with 60,7 mlrd to 144,4 mlrd dollars Thus for the third quarter 2007 when liquidity crisis has come to Russia, the share of an investment portfolio in a total cost of reserve currency actives has decreased with 37,2 to 35,9 %.
thus the Central Bank has increased a share of tools with term of repayment less than year (with 62 to 64 %). In securities with term of repayment less than year on the end of September has been invested 11 % of actives (on the end of June - 7 %). At the same time long-term investments have been reduced: The share of actives in papers with term of repayment was reduced more than one year with 38 to 36 %. Besides, the Central Bank has increased from October, 1st, till September, 30th, 2007 a share of actives in tools with high credit rating AAA (the state securities) with 33 to 44 %, having reduced thus a share of tools with rating AA with 50 to 39 %. Thereby the Bank of Russia levelled effect of revaluation by rating agencies of risks of an investment in papers as a result of world crisis of liquidity. Also the share of actives in tools with a rating has been reduced And that was especially appreciable in the third quarter: their share has fallen with 18 to 12 %.
Despite reduction of long-term investments and growth of investments into papers of a high credit rating, profitableness of actives of Bank of Russia for the third quarter has grown on dollars with 5,28 to 5,57 % annual, on euro - with 3,04 to 3,46 % annual, profitableness on pounds sterling - with 3,75 to 5,29 % though for a year before it has fallen from 4,23 % annual has essentially grown. According to Evgenie Gavrilenkova, growth of profitablenesses on pound sterling it is possible to explain the decision of Bank of England to increase in July the interest rate on 25. The item, to 5,75 % annual. “ but I think that it not the unique factor of growth of profitableness. It is quite probable that the Central Bank was shifted from short-term in long-term tools on pound “ - Evgenie Gavrilenkov speaks.