2023-10-12 09:22:30
In order to stabilize the ruble, Russian export companies have to sell part of their foreign exchange income to the central bank for six months. The move serves to “reduce the short-term volatility of the market,” the central bank said on Thursday, commenting on a decree from President Vladimir Putin.
Companies that export energy, metals, chemical products, wood products or grain and receive foreign currency for doing so are particularly affected. The government will still determine the timing of the measure and the exact percentage of the currency to be sold, according to the Kremlin in Putin’s decree on Wednesday evening.
The Russian currency has lost about 38 percent of its value this year. It was most recently just above the lows after the start of the war of aggression against Ukraine in spring 2022. At the beginning of this week, the ruble was again below the 100 ruble mark for one US dollar. One euro was worth just over 103 rubles on Thursday.
Putin’s decree also stipulates that representatives of the Russian financial regulator will be sent to certain companies to control the sale of foreign currencies. The measures should improve the transparency of the foreign exchange market in the long term and help avoid speculation, it said. “We are confident that the introduced obligations to sell foreign currency proceeds will not be a burden for well-intentioned market participants,” said Deputy Prime Minister Andrei Beloussov.
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