Russian authorities may soften the parameters for the sale of exporters’ foreign currency earnings from 90 percent to 50-70 percent. This view was expressed in a conversation with socialbites.ca by Alexander Bakhtin, investment strategist at BCS World of Investments, who commented on the Russian government’s proposal to extend the sale of foreign currency earnings until the end of 2024.
Bakhtin explained that the mandatory return and income sale threshold may vary depending on the price table in commodity markets, exchange rate dynamics and macroeconomic parameters.
The investment strategist predicted that the ruble exchange rate would strengthen if the measure was extended. According to the expert, in the first quarter of 2024, the dollar rate will consolidate at 87 rubles, with possible periods of movement increasing to 83.5-85 rubles. For the euro, these are levels of 93-95 rubles, respectively. The investment strategist explained that in addition to expanding the income measure, the strengthening of the Russian currency will be facilitated by the high interest rate of the Central Bank of the Russian Federation (currently 16%).
The Ministry of Finance of the Russian Federation supported the extension of the measure, but the Central Bank could not find justification for this. More details material “Newspapers.Ru”.
Since October 16 last year, domestic exporters must credit 80 percent of the foreign currency they receive to accounts in Russian banks and sell 90 percent of the credited revenue on the domestic market. These rules apply to 43 company groups and are valid until April 30, 2024.
Previously Russian President Vladimir Putin reported about possible adjustments to currency control mechanisms.