Mandatory sales of foreign exchange earnings by Russian exporters provide immediate psychological support to the ruble exchange rate, cool speculative demand for foreign currency and stimulate the sale of foreign currency by participants not subject to this condition. This opinion was expressed by BCS World of Investments stock exchange expert Dmitry Babin in a conversation with socialbites.ca.
The official noted that forced sales of proceeds are currently unlikely to provide direct support to the ruble exchange rate.
“The decision was made recently. It is likely that a certain period of time will be needed to establish the appropriate administrative infrastructure. The reason for this is the appointment of special officials, state representatives in the companies announced within the framework of this exchange control norm, those who will monitor compliance,” explained Babin.
Russian President Vladimir Putin signed a decree on Wednesday imposing mandatory sales of foreign currency earnings on some Russian exporters. The decree affects 43 Russian export groups belonging to the fuel and energy complex, ferrous and non-ferrous metallurgy, forestry and chemical industries, and grain production. Their names have not been released yet. According to the document, individual companies must repatriate (return to Russia – socialbites.ca) within six months and sell their foreign exchange earnings in the country. Volumes and timing must be determined by the Council of Ministers of the Russian Federation. Individual companies were required to submit to the Central Bank of the Russian Federation and Rosfinmonitoring indicative plans and programs for buying and selling foreign currency on the Russian market. Authorized representatives of financial intelligence are introduced to individual companies. Representatives will monitor and ensure compliance with currency regulatory rules.
Such a decision should stop the growth of the dollar, which has updated its psychological mark to 100 rubles several times since last week. What will happen to the ruble exchange rate now? material “Newspapers.Ru”.
In trading on the Moscow Stock Exchange on Friday, the ruble exchange rate initially fell in price: the dollar approached yesterday’s peak of 98 rubles. Soon the Russian currency began to quickly regain lost ground and reached a moderate surplus. The dollar rate fell to 96.9425 rubles and the euro to 102.1875 rubles. According to foreign exchange data at 14:40 Moscow time, the dollar is traded at 97.26 rubles and the euro is traded at 102.4175 rubles.
Previously analyst Buivolov guess Next week’s dollar rate.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.