How the ruble will react to a threefold increase in foreign exchange interventions
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How the budget rule used to work
Foreign exchange interventions under the budget rule have not been carried out since January 2021. According to the model of the rule in force at that time, the Central Bank began interventions on behalf of the Ministry of Finance after the oil price fell below the cut-off price (in 2020 it was $42.4). The regulatory basket for interventions consisted of 39.7% euro, 30.4% yuan, 5% pound sterling, 4.7% yen and 20.2% gold. In this proportion, the National Wealth Fund (NWF) was filled. Previously, it included dollars. Funds in euros, pounds and yen in accounts with the Central Bank are blocked due to sanctions at the end of February. The budget rule has since been suspended.
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