At the unified MICEX trading session (UTS) this Thursday, the 'tomorrow' dollar exchange rate which underlies the Bank of Russia's considerations when setting an official exchange rate for the next day, stood at 28,765 roubles per $1. This is a merely 1.61 copeck decrease in comparison with last Wednesday but to prevent this gap from further expansion, the central bank which was this Thursday virtually the only purchaser of the US currency at the MICEX had to make big sacrifices.
By the time of official exchange rate setting at the UTS, the total of 'tomorrow' contracts was valued at $1,774.7 million to become a new Exchange record this year. It was an immense volume, according to one of the dealers.
The previous maximum was recorded on January 26 when by 11:30 Moscow Time the 'tomorrow' contracts at the MICEX had constituted $1,201.946 million against the usual turnover making $200-300 million at this hour.
In contrast to the US currency, the European currency had a smooth run: the 'today' euro exchange rate at the MICEX UTS grew by 27.11 copecks to hit 36.8866 per euro.
Experts are unanimous in their opinion that the success of the euro and the failure of the dollar is connected with George Bush's victory at the presidential elections in the United States since the continued tenure of the incumbent president means the continued priorities on the world markets-the weak US dollar and the high prices for oil. The dollar's inferior position leads automatically to the better position of the European currency on the world market and financial market and, as a consequence, on the Russian market.
The euro's growing exchange rate at the MICEX pushed all to sell their US dollars, according to Igor Vassiliev, chief of Alfa-Bank's monetary operations department. The regulator would buy the US currency for 28.765 roubles per dollar.
Dealers say that many had expected the central bank to diminish its quotations for foreign currency purchase this Thursday and these moods was a major encouragement for the sellers. But the central bank did not change its habits and no participant in the trading session would take the risk of forecasting when this may happen.
"One can only wonder how long the central bank is going to consolidate thw rouble," contemplates Vasisliev. "The Bank of Russia is just keeping its balance between restrictions on inflation and support for commodity producers." Anyway, the central bank should bid its time (say, for two weeks) to see the effect its new exchange rates have produced on inflation figures, in particular, last October.
A press-release of the Bank of Russia's foreign and public relations department, which reached RIA Novosti this Thursday, reports that the gold reserves of the Russian Federation as of October 29, 2004 amounted to $107.3 billion against $105.2 billion on October 22, 2004. Thus, Russia's gold stock last week swelled by $2.1 billion.
