Russia spent $57.5 bn in Sept-Oct to back ruble

Russia spent $57.5 bn in Sept-Oct to back ruble

Moscow: Russia spent $57.5 billion from its foreign currency reserves in September and October to support the declining ruble during the financial crisis, the Central Bank chief revealed on Wednesday.

In addition to fluctuations in currency exchange rates, this has caused Russia’s international reserves to fall by $97.6 billion during the period, the Central Bank’s chairman Sergei Ignatyev told the lower chamber of the Russian parliament.

Ignatyev also said Russia cut its investments in bonds of embattled US mortgage firms Fannie Mae and Freddie Mac over the two months, from $65.6 billion to $20.9 billion by 1 November.

Russian officials revealed in July that Russia holds $100 billion in US agency debt, a proportion of which is held in Fannie Mae and Freddie Mac. They reassured that unlike the share price for the agencies, their debt remained stable.