Growth in balances of correspondent accounts influences ruble credit rates

Balances at correspondent accounts of Russian commercial banks increasedconsiderably at the beginning of business today. This growth amounted to12bn rubles (about $380m) throughout the country and to 10.5bn rubles(about $333m) at banks in the Moscow region. This has been the highestadvance since August 1, 2002. As a result the balance of correspondentaccounts at Russian commercial banks amounted to 88.933 billion rubles(about $2.82bn) as of the beginning of business on August 28. The balanceof the correspondent accounts at the banks in the Moscow region reached54.441 billion rubles (about $1.73bn). These figures have been the largestsince August 1.This advance in balances at correspondent accounts resulted in the decreasein ruble credit rates. Currently the overnight credit rate is quite low,about four percent. The growth in free ruble resources on the market led toa noticeable increase in the dollar exchange rate at the morning sessionand on the interbank currency market..