Deposit rates, Central Bank meeting, Eurobond coupons: digest

Top 10 deposit rates. Today the Bank of RUSSIA will make a decision on the key rate. Holders of Russian Eurobonds received payments in dollars. notable events, How exchanges work On March 18, the Bank of Russia decided not to resume trading in shares on the Moscow Exchange from March 14 to 18. Transactions in the currency, money markets and the precious metals market will take place from 10:00 to 19:00 Moscow time. SPB Exchange plans to start trading in the mode intended for private investors at 16:00 Moscow time. The site will update the information today during the day on its website.

Why trading in shares on the Moscow Exchange is closed: reasons, risks and prospects Investments , Moscow Exchange , Central Bank , Shares

Top 10 rates on deposits and savings accounts

The average rate of the 54 largest depository banks on deposits for a period of one year in the amount of ₽100 thousand as of March 18 is 9.55% per annum, according to the FRG100 index.

The most favorable deposit rate as of March 18, 2022 is 25% per annum.

Top 10 banks with high effective rates on deposits and savings accounts as of March 18, 2022:

Tavrichesky Bank - up to 25.10%; Sinara - up to 25%; Sovcombank - up to 25%; Post Bank - up to 25%; Novikombank — up to 25%; Ural Bank for Reconstruction and Development - up to 24%; VTB — up to 24%; SBI Bank - up to 23.50%; Fora-Bank — up to 23.50%; Transcapitalbank - up to 23.50%.

Source: Banki.ru financial marketplace (the effective rate is calculated according to the Banki.ru methodology and is not an offer, detailed conditions are in credit institutions).

Credit rating of Russia and payment of coupons on public debt

The international rating agency S&P downgraded Russia's long-term sovereign credit rating in foreign currency from CCC- to CC with a negative outlook.

Investors have not yet received a $117.2 million coupon payment on two issues of Russian Eurobonds due to technical difficulties amid sanctions, according to S&P. On the eve of the Ministry of Finance announced the execution of a payment order for the payment of a coupon on the public debt. The department stressed that it will inform additionally about the transfer of funds to recipients.

On March 14, the Ministry sent an instruction for the payment of DOLLAR coupons on Russian Eurobonds of two issues to JPMorgan, noting that if the US side does not allow the “unfreezing” of the currency accounts of the Central Bank and the government, payments to bondholders will be made in rubles.

BLOOMBERG, citing people familiar with the matter, said that JPMorgan had processed the funds intended to pay interest on dollar bonds and sent them to Citigroup, which acts as a paying agent for Eurobonds. This information was confirmed by REUTERS sources.

According to Reuters, holders of Russian Eurobonds have already received coupon payments in dollars.

Central Bank rate meeting

On Friday there will be a meeting of the Board of Directors of the Bank of Russia on the key rate. The regulator will announce its decision at 13:30 Moscow time, and a speech by the HEAD of the Central Bank Elvira Nabiullina is scheduled for 15:00 Moscow time. There will be no press conference with journalists' questions this time.

Now the rate is at a historically record level of 20% - the Central Bank raised it at an unscheduled meeting on February 28 from 9.5%, in response to Western sanctions and a decline in the Russian financial market.

Of the 17 experts polled by Reuters, 16 people believe that the regulator will leave the rate unchanged at 20% and one believes that it will raise it to 25%.

How the key rate of the Central Bank of the Russian Federation changed, October 14, 2013 - February 28, 2022 (Photo: RBC)

The level of 20% acts as a barrier to the outflow of depositors' funds, while at the same time compensating for increased inflationary risks, said Vasily Karpunin, an expert at BCS World of Investments. “We believe that the regulator can take a break and observe the development of the situation. In addition, no one interferes with the Bank of Russia, if necessary, to raise rates unscheduled at any time, ”he wrote.

Investment DIRECTOR of Loko-Invest Dmitry Polevoy draws attention to the fact that we are currently experiencing a price shock. In his opinion, by the end of March inflation could rise to 15-20%. “In such a situation, the Central Bank’s rate of 20% may no longer look high,” writes Polevoy, noting that “the potential for a rate increase is obvious.”

VTB will transfer foreign securities of clients to other brokers

VTB Group has notified clients of its brokerage division that their foreign assets will be transferred to other investment companies to avoid freezing. This follows from the email newsletter sent to users of the VTB My Investments service (available from RBC Investments).

“VTB Bank fell under sanctions. Because of this, it is now impossible to invest in foreign securities in a broker. If assets are not transferred to another broker, they may be frozen for an indefinite period by a superior foreign depository,” the mailing says.

VTB also informs that the transfer of the entire investment portfolio may take up to several weeks. At the same time, IIS will also be transferred if it contains foreign papers. The new broker will send detailed instructions on how to access the account until March 25 inclusive.

Russian currency

The ruble strengthened against the dollar for six sessions in a row. During this time, the dollar-ruble pair fell by ₽16.85, or 14%, amounting to ₽103.15 per dollar at the end of trading on March 17.

“Due to the fall in imports and restrictions on the purchase of buyers' currency, dollars are clearly not enough to compensate for the sale of 80% of exporters' revenues. If some restrictions on currency control are not lifted, the ruble will continue to strengthen. We do not exclude the return of the dollar to the region of ₽90–95. Such a scenario will help to bring down the inflation surge,” Vasily Karpunin believes.

"Renaissance Capital" predicted the average dollar exchange rate in the range of ₽85-105 Dollar , Currency , Banking and finance

Last day to buy shares for dividends and other important events

Seagate: last day to buy shares at a dividend of $0.70 per share; due date is April 6th.
Broadcom: last day to buy shares at a dividend of $4.1 per share; payment date is March 31st.
Rosseti Lenenergo : IFRS annual consolidated financial statements for 2021.
PIK : financial results for 2021.
NOVATEK : Board of Directors to decide on dividends.

Telephone conversation between US President Joe Biden and Chinese President Xi Jinping - 16:00 Moscow time. How the previous trading session ended S&P 500 : 4411.67 (+1.23%) DOW JONES Industrial Average : 34,480.76 (+1.23%) NASDAQ Composite : 13,614.78 (+1.33%)