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Bank of Russia sells foreign currency worth over $8 bln with settlements on September 26

The amount of currency sales on the domestic market with settlements on September 25 was 21.4 billion rubles

MOSCOW, September 27. /TASS/. The Bank of Russia sold foreign currency worth 0.8 bln rubles ($8.26 bln) on the domestic market with settlements on September 26, according to data published on the regulator’s website.

The regulator sold foreign currency in the amount of 21.3 bln rubles ($220.72 mln) on the domestic market with settlements on September 25.

The Bank of Russia said earlier that from August 10, through December 31, 2023, it would not buy foreign currency in the domestic market to mirror regular fiscal rule-based operations conducted by the Ministry of Finance, adding that the move was aimed at reducing volatility in financial markets. The regulator noted that it would make a decision on resuming fiscal rule-based foreign currency purchases in the domestic market depending on the actual situation in financial markets. The Bank of Russia will continue operations to sell foreign currency in the domestic market that are related to the use of the National Wealth Fund’s resources.

Earlier the Bank said of Russia that it would temporarily speed up transactions announced earlier to mirror operations that are related to the use of the National Wealth Fund’s resources in the first half of 2023. In the period from September 14 to 22, 2023, the Bank of Russia will sell foreign currency on the forex market totally worth 150 bln rubles ($1.5 bln). Consequently, the daily volume of those operations by the Bank of Russia will stand at 21.4 bln rubles instead of 2.3 bln rubles.

The Finance Ministry shifted to purchases of foreign currency and gold under the fiscal rule on August 7. The amount of funds to be allocated for purchase of foreign currency and gold from August 7, 2023 to September 6, 2023 totals 40.5 bln rubles ($400 mln), with daily purchases equaling 1.8 bln rubles.

The Russian Finance Ministry resumed FX sell operations in the domestic FX market under the new fiscal rule mechanism on January 13, 2023. Purchase and sales transactions of foreign currency are carried out by the Bank of Russia on the domestic market in the currency section of Moscow Exchange in the ‘Chinese yuan-ruble’ instrument.