Russia will set a $1 billion limit on the purchase of foreign currency for transactions abroad

Russian President Vladimir Putin instructed the government, together with the Bank of Russia, to set a limit of up to $1 billion for the purchase of foreign currency by residents on the domestic market for transactions that were approved by the government commission. This should from the list of instructions of the head of state, published on the Kremlin website.

The deadline for the execution of the order is set until June 1, 2023. Prime Minister Mikhail Mishustin and Chairman of the Central Bank Elvira Nabiullina have been appointed responsible for this task.

“Ensure the establishment of a monthly limit in the amount of no more than $1 billion for the purchase by residents of foreign currency in the domestic foreign exchange market of the Russian Federation for the purpose of subsequent crediting of foreign currency to accounts opened in banks located outside the territory of the Russian Federation, for settlements on transactions that are made on the basis of permits Government Commission for the Control of Foreign Investments,” the statement said.

The fact that the Bank of Russia and the Ministry of Finance are developing a mechanism that provides for the establishment of a monthly limit on the purchase of foreign currency on the domestic market in transactions between foreign investors and Russian companies, Vedomosti wrote April 17th.

At the end of April, Deputy Finance Minister Alexei Moiseev toldthat in Russia it is planned to introduce a single limit for all transactions on the purchase of foreign currency on the domestic market when foreign investors withdraw from Russian assets.

“The limit will be the same. The point is that there should be no influence on the foreign exchange market. That is, this means that, relatively speaking, the commission allowed the sale of a business for such and such an amount, but you can buy currency within a certain period so as not to violate the limit,” he said. At the same time, there will be no link to a specific period or season, so as not to manipulate the exchange rate, the Deputy Minister specified.