The Ministry of Finance announced that there will be an almost 38 percent increase in gold and foreign currency purchases 12:15

The Russian Ministry of Finance plans to increase the volume of foreign currency and gold purchases according to the budget rule from October 6 to November 7 to 18.12 billion rubles per day. This is stated in Message ministries.

The expected volume of additional oil and gas revenues of the federal budget is projected to be 513.48 billion rubles in October 2023. The deviation of actually received oil and gas revenues from the expected monthly volume of oil and gas revenues at the end of September 2023 amounted to -114.76 billion rubles. Thus, the total amount of funds allocated for the purchase of foreign currency and gold reached 398.72 billion rubles.”

The daily purchase volume in the October-November period is almost 38% higher than in the period September 7 – October 5, and 10 times higher than in the period August 7 – September 6. At the same time, the Bank of Russia will not “mirror” the activities of the Ministry of Finance in the market until the end of 2023 in order to reduce volatility. The regulator will be able to make forward purchases in 2024 and beyond.

On August 7, the Russian Ministry of Finance resumed foreign currency purchases according to the budget rule for the first time since 2022.

Within the scope of the fiscal rule mechanism, transactions in the domestic foreign exchange market resumed in January 2023 after being stopped in the spring of last year. The Central Bank started selling Chinese yuan for the benefit of the Ministry of Finance. Since the actual oil and gas budget revenues were below the base revenues, the Central Bank only sold foreign currency from January to July. According to Ministry of Finance data, 559 billion rubles worth of yuan was sold in seven months. If real income exceeds basic income, the regulator would purchase foreign currency.

Previously in Russia saidHow will the Central Bank’s decision not to buy foreign currency affect the ruble exchange rate?

Source: Gazeta


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