The Ministry of Finance advocated the extension of the mandatory sale of foreign currency earnings

The Ministry of Finance is in favor of extending the mechanism for mandatory repatriation and sale of foreign currency earnings by the largest Russian exporters, as it has proven to be “effective.” The department allows for adjustments to the scheme if necessary: ​​this will happen if exporters begin to encounter difficulties. The Bank of Russia opposed the extension of this measure. President Vladimir Putin admitted that the mechanism itself will be corrected.

According to the Ministry of Finance, the October presidential decree “showed its effectiveness.” “This measure helped stabilize the situation in the domestic foreign exchange market. In this regard, its extension at this stage is justified,” the press service of the Ministry of Finance told Interfax.

Today, January 23, Russian President Vladimir Putin promised to correct the mechanism for returning foreign exchange earnings by exporters if any problems arise with it. “As for currency control. This has to do with the return of revenue, right? Here we have already made certain decisions, if something doesn’t work, we will fix it,” he said during a meeting with participants and winners of the “Family of the Year” and “It’s Our Family” competitions.

At the same time, the Bank of Russia does not see the need to extend the deadline for the mandatory sale of foreign currency earnings. The press service of the Central Bank said TASSthat there are no “weighty reasons” for extending the mandatory sale of foreign currency earnings by the largest exporters, the impact of the measure on the foreign exchange market was moderate in comparison with the ongoing monetary policy and the level of the key rate.

Prior to this, First Deputy Prime Minister Andrei Belousov said that the government positively assesses the effect of the requirement introduced in October for the mandatory sale of foreign currency earnings by exporters and will propose to extend these measures, which expire on April 30, until the end of 2024. Belousov noted that the measures introduced in the fall of 2023 showed their effectiveness and helped stabilize the situation in the domestic foreign exchange market, making it possible to cover the deficit of foreign currency needed by importers and strengthening the ruble.

Requirements for mandatory repatriation of foreign currency and sale of foreign currency proceeds act until April 30, 2024 for 43 groups of companies. The mechanism stipulates that Russian exporters must credit accounts in Russian banks with at least 80% of the currency received and sell at least 90% of the credited proceeds. IN interview “Kommersant” Andrei Belousov said that the mandatory sale of foreign currency earnings helps, among other things, to ensure a balanced foreign exchange market.

Read more about why exporters continue to hold currency abroad in the Kommersant article. “Dollars accumulated in banks”.

Alexander Kislov