MOSCOW, January 19. /TASS/. The ruble’s weakening at the end of 2022 was due to temporary factors, such as a decline in exporters’ currency earnings and the rising demand of certain trading participants, according to a review of financial markets published by the Bank of Russia on Thursday.
In particular, in December 2022, the average daily net sales of currency by 29 of Russia’s largest exporting companies dropped 6% lower than in November 2022 mainly due to a decline in sales in the oil and gas sector. Average daily net sales by largest exporters in the second half of December went down, amounting to 37.7 bln rubles ($576 mln), which is 24% less than in the first half of December, and was partially seasonal.
The supply of foreign currency from the biggest exporters fell amid a downward price trend for the export of hydrocarbons coupled with a decrease in physical volumes of oil and gas exports. Systemically important banks, as the main agents for the sale of exporters' foreign currency proceeds, remained the largest sellers of foreign currency on the market. However, the amount of currency sold in November and December (727 bln and 725 bln rubles, respectively) fell compared with October (837 bln rubles).
That said, the demand for ‘toxic’ currency from certain participants increased. Particularly, apart from traditional purchasers of currency (importers and individuals that occasionally transfer funds to foreign accounts), the demand for ‘toxic’ currency was demonstrated by clients that buy out businesses from companies from hostile countries, which were forced to quit the Russian market due to sanctions. Moreover, the process of converting currency deposits into those in rubles accelerated at the end of the year, which led to an increase of demand by banks for foreign currency to offset the influence on the open foreign exchange position.