5 Oct 2010 14:20

Russian int'l reserves top $490 bln

MOSCOW. Oct 5 (Interfax) - Russia's international reserves exceeded $490 billion at the beginning of October, Central Bank First Deputy Chairman Alexei Ulyukayev said at the VTB Capital forum in Moscow.

The CB has said the reserves were $487.7 billion on September 24.

The CB is satisfied with the Russian economy's recovery process, he said. "The four-percent, four-percent-plus pace is normal, natural for the given situation," he said.

That result was made possible by recovering global demand, one consequence being the robust trade surplus: in the first two quarters of the year it was the best in history and contributed to the high current account surplus that has enabled the CB to increase reserves.

The international reserves are now $60 billion higher than they were in early 2009. That has made it possible to increase offers in Russia. The monetary base is growing stably, currently about 27% higher than a year ago. The credit multiplier will make if possible to boost the money supply at a faster pace. It has risen about 33%.

That creates certain problems from the standpoint of inflation risks, on the one hand, and makes it possible to establish the level of liquidity that will make the banking system more reliable from the asset standpoint, on the other. In particular, bank deposits from individuals and corporates will rise. Together with the CB's interest rate policy, these factors will make is possible to boost lending. And the loan portfolios at the banks have been increasing since March, Ulyukayev said.