The Central Bank allowed a decrease in volatility after the introduction of mandatory sales of proceeds

The Bank of Russia expects an increase in the efficiency of currency sales, an improvement in the liquidity situation and a decrease in volatility as a result of the introduction of mandatory sales of proceeds in foreign currency. The press service of the Central Bank reported this, transmits Interfax.

“At the same time, the targeted nature of these restrictions will allow us to maintain the developed schemes of foreign trade settlements for the majority of participants in foreign trade activities,” the Central Bank noted.

They recalled that the key factors for the stability of the foreign exchange market are the foreign trade balance and the monetary policy of the Bank of Russia to reduce inflation in the country. The regulator pointed to “improved export conditions” in the third quarter, which contributed to the growth of export revenues. They added that “adjusting imports” to tightening monetary conditions and increasing the attractiveness of ruble savings “will support the ruble.”

October 11, Russian President Vladimir Putin signed decree on the mandatory sale of proceeds in foreign currency received by individual Russian exporters under foreign trade agreements. The goal is to create long-term conditions for increasing the transparency and predictability of the foreign exchange market, as well as reducing the possibility of currency speculation, explained First Deputy Prime Minister Andrei Belousov.

The decree defines a specific list of 43 exporters related to the sectors of the fuel and energy complex, ferrous and non-ferrous metallurgy, chemical and forestry industries, and grain farming, which will be affected by these measures. For them, mandatory repatriation and sale of foreign currency earnings on the Russian market are introduced for six months.