It’s too early to assess the impact of the mandatory sale of foreign currency earnings – Kommersant

The head of the Bank of Russia, Elvira Nabiullina, said that it will be possible to assess the impact of the mandatory sale of foreign currency earnings by exporters on the ruble exchange rate when the Central Bank receives more complete information. According to the regulator, such restrictive measures can only work for a short period of time, somewhat accelerating the impact of fundamental factors.

“In the future, the exchange rate will be affected by tightening monetary policy, which will cool aggregate demand, including demand for imports in ruble terms. The exchange rate will also be affected by changes in prices and physical volumes of exports, as well as the associated dynamics of the trade balance,” added Ms. Nabiullina at a press conference following a meeting of the Board of Directors of the Central Bank. The video broadcast is carried out in the Bank of Russia account YouTube.

October 16 It entered into force a decree of Russian President Vladimir Putin, which obliges exporters from a list closed by the authorities to credit their accounts in Russian banks with at least 80% of the currency received under export contracts – in order to then sell at least 90% of these amounts on the domestic market.

Today, October 27, the Board of Directors of the Bank of Russia announced a decision to increase the key rate by 200 bp, to 15% per annum. After this, the dollar exchange rate during trading on the Moscow Exchange fell below 93 rubles, the euro exchange rate is below 98 rubles. The Central Bank explained the decision to raise the rate by accelerating inflation. The regulator slightly worsened the inflation forecast for the current year – to 7.0–7.5% instead of the previous 6–7%. The Bank of Russia made it clear that the government’s high budget expenditures for the next three years are pushing back plans to return inflation to the target 4%

More details in the material “Race with inflation”.

Erdni Kagaltynov