the decree on the mandatory sale of foreign currency earnings is irrelevant due to the strict monetary policy – ​​Kommersant

The Bank of Russia believes that given the current high key rate, there is no urgent need to extend the decree on the mandatory sale of foreign currency earnings by exporters. This was stated by the first deputy director of the Central Bank’s monetary policy department, Andrei Gangan.

According to Mr. Gangan, an increase in the key rate “affects the dynamics of the exchange rate through two channels.” “The first channel – it somewhat cools imports, the second channel – this, let’s say, more economically stimulates exporters to sell foreign currency earnings,” he said today, March 14, during a communication session with business in Novosibirsk (quoted by Intrefax).

A Central Bank employee noted that a low ruble rate may provoke exporters to hold back foreign currency earnings and use borrowed funds for ruble expenses in the country. “Due to the fact that tight monetary conditions will continue to encourage exporters to sell foreign currency earnings, I think that the extension (of the decree on the mandatory sale of foreign currency earnings) is not so necessary,” Gangan said. He also emphasized that some exporters need to leave part of their foreign currency earnings due to the need to pay for imports.

In October 2023, President Vladimir Putin signed a decree “On the implementation of the mandatory sale of proceeds in foreign currency received by individual Russian exporters under foreign trade agreements (contracts).” The decree applies to 43 groups of companies, including the fuel and energy complex, ferrous and non-ferrous metallurgy, chemical and forestry industries, and grain farming. A government resolution adopted in addition to the decree obligated these companies to credit their Russian bank accounts with at least 80% of the currency received under export contracts and to sell at least 90% of the amounts so credited.

These measures were introduced until April 30, 2024. In January, the government said it would propose extending the decree until the end of this year. The Central Bank opposed it.

About the controversy surrounding foreign exchange earnings – in the column of Tatyana Edovina “It would be something to sell”.

Daria Moseykina