Russia may resume buying foreign currency for its reserves in May – Kommersant

Russia is likely to resume buying foreign currency for its reserves this month, reports Bloomberg. According to him, the growth of Russia’s oil revenues “stabilizes public finances”, and the Ministry of Finance may announce the resumption of foreign currency purchases this week.

The agency writes that the initial purchase volumes could be equivalent to about $200 million in yuan per month. The Chinese currency is the main asset that Russia can still use to transact for its $154 billion Wealth Fund, Bloomberg notes.

In July 2022, Finance Minister Anton Siluanov saidthat it is impossible to purchase currencies of unfriendly countries, primarily dollars and euros. According to him, when the budget rule is resumed, interventions with the help of currencies of friendly countries are possible, so that “the ratio of the ruble to the dollar and the euro changes through cross-rates.” He did not specify what currencies he was talking about.

In January 2023, the Central Bank resumed operations in the domestic foreign exchange market within the framework of the budget rule. Trades are held on the Moscow Exchange in the Chinese yuan-ruble instrument. In February, the Ministry of Finance almost tripled increased RMB sales under the fiscal rule. Since April 7, the department was going to sell foreign currency for 3.7 billion rubles. in a day. In total, 74.6 billion rubles were allocated for operations. (in March – 119.8 billion rubles). The decline was due to the fact that the expected volume of shortfall in oil and gas revenues for the month increased compared to the March forecast.

About the situation on the market – in the material “Kommersant” “The dollar was taken into circulation”.

Laura Keffer