The Central Bank of the Russian Federation has decided not to buy foreign currency from the domestic market from August 10 to the end of 2023, under the budget rule. This is specified Message regulator.
The Central Bank explained that this was necessary to reduce volatility in financial markets. The Central Bank of Russia stated that it will decide to restart foreign exchange purchases within the framework of the budget rule, taking into account the actual situation in the financial markets. The regulator said purchases that were delayed during the relaunch of the mechanism could pass in 2024 and beyond.
Ministry of Finance of the Russian Federation August 3 announced Resumption of foreign exchange purchases under fiscal rule for the first time since 2022.
The transactions in the domestic foreign exchange market, which were suspended last spring within the scope of the fiscal rule mechanism, resumed in January 2023. The Central Bank began selling Chinese yuan in the interests of the Ministry of Finance. Due to the fact that the actual oil and gas revenues of the budget were below the base revenues, the Central Bank only sold foreign currency in the January-July period. For seven months, the yuan was sold for 559 billion rubles, according to data from the Ministry of Finance. If actual revenues exceeded base revenues, the regulator would buy foreign currency. On July 21, the Central Bank of the Russian Federation announced that it will buy/sell yuan in the market against domestic Russian ruble investments from the National Wealth Fund for the calendar half of the year. The volume of such investments from NWF in the first six months amounted to 288 billion rubles. Based on this, the daily volume of sales of such yuan for six months since August 1 is 2.3 billion rubles.
before in Russia acceptedHe said the Central Bank’s sale of the yuan would support the ruble.