currency earnings
Russia may partially restore capital controls to halt the depreciation of the ruble. Wrote Bloomberg cites four sources.
According to the interlocutors of the publication, on the eve of August 14, the government, at a meeting with the main exporters of Russian products, considered the option of returning to the mandatory sale of export proceeds. Not everyone agreed with this proposal. Another meeting will be held at the weekend to discuss this option.
On August 15, the Central Bank decided to immediately raise the key rate from 8.5% to 12%. The indicator was raised to “limit risks to price stability”.
Immediately after the exchange rate increase, the national currency started to strengthen, but then it started to fall back to 99 rubles. to dollars and up to 103 rubles. to the euro. Against the backdrop of the release of Bloomberg material, the ruble on the Moscow Stock Exchange has grown and at 22:00 Moscow time the US dollar is trading at 97.09 rubles, by this time the euro costs 106.01 rubles.
how was 2022
Last year, exporters were supposed to sell their foreign currency earnings on February 28, 2022, shortly after the start of a special military operation in Ukraine due to the depreciation of the national currency due to Western sanctions. Then, under President Vladimir Putin’s decree, exporters had to sell 80 percent of their foreign exchange earnings.
The rate was reduced to 50% in May due to the stability of the ruble exchange rate. In June, the mandatory requirement was completely removed, and the government commission was ordered to set the control of foreign investment in determining the size of the market share. In February 2023, Putin canceled the regulation on the mandatory sale of proceeds.
Peaks not reached
Bloomberg pointed out that in the current situation, the opportunities of Russian economic authorities to make foreign exchange interventions are limited, as a significant part of the Russian Central Bank’s reserves are frozen due to sanctions.
On August 14, the value of one US dollar on the Moscow Stock Exchange rose to 101 rubles, 1 euro was traded at 111 rubles. – these are the minimum values of the ruble exchange rate since March 2022. But the ruble has not yet reached the heights of last year – in March 2022, the euro cost 127 rubles, the dollar – 120. The Central Bank explained the decline in the national currency with a significant drop in the country’s exports and higher rates. lending to the population.
Russian Vice President Maxim Oreshkin attributed the weakening of the ruble to the regulator’s extremely soft policy. At the same time, he assured that the Bank of Russia has the means to normalize the situation.
The value of the ruble has been gradually decreasing over the past month. At the end of July, the head of the Ministry of Finance Anton Siluanov explained the trend with the movement of the currency – the inflow and outflow – that is, the balance of trade. Siluanov excluded the connection between the decline of the ruble and the sale of foreign enterprises in Russia. Officials said such an option is unlikely as they limit withdrawal volume from the $1 billion per month ceiling.