Starting October 16, some Russian exporters will be required to deposit at least 80% of their foreign exchange earnings into accounts in the Russian Federation. explained There is a corresponding presidential decree in the government apparatus.
“Government decree effective from 16 October [2023 года] “Individual Russian exporters are required to deposit at least 80% of all foreign currency received into Russian bank accounts within 60 days of receiving funds, in accordance with the terms of their export contracts,” the release said.
They also had to sell at least 90 percent of the foreign exchange earnings deposited into Russian accounts in the domestic market. This will need to be done within two weeks.
The government office noted that exporters will have to sell at least 50% of the funds received under each contract in no more than 30 days from the date of receipt.
October 11, Russian President Vladimir Putin signed a decree On the return of the compulsory sale of foreign currency earnings of Russian exporters for a period of six months. There will be 43 companies on the list and their names will be determined by the government. Individual companies will also need to submit plans and programs for buying and selling foreign currency in the domestic market to the Central Bank and Rosfinmonitoring.
Putin expects the decree he signed to have a positive impact on the floating exchange rate of the ruble.
The press service of the Bank of Russia assured that the return of the compulsory sale of foreign currency proceeds will improve the liquidity situation in the market. Later, Central Bank Governor Elvira Nabiullina registeredthat the restriction is temporary and targeted.
Dmitry Babin, formerly a financier statedHe said Putin’s decision supported the ruble exchange rate.