The Ministry of Finance of the Russian Federation will direct on purchase of foreign currency 267 billion

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The Central Bank made the decision to return to the foreign exchange market with currency purchases with the stabilization of the situation on the market. This decision was announced in December. On August 22, 2018, the Central Bank stopped currency purchases from the market in order to reduce the tension in the market caused by discussion of new sanctions against Russia in the us Congress.
The volume of purchases depends on the size of the budget surplus for the previous month and is calculated monthly by the Ministry of Finance.
Purchased currency will be sent to the current account of the Ministry of Finance to the Central Bank and at the end of the financial year will be forwarded to the national welfare Fund. This process is regulated by the Budget code of the Russian Federation.
I do not expect a significant impact on the market and the ruble, since we are talking about quite small amounts of daily shopping: in the area of 220-230 million USD with a total trading volume in 15-17 billion. Such purchases were made earlier the Central Bank from the beginning of 2017, and some significant influence on the course not provided.
Vladimir Tikhomirov,
Chief economist,
BCS Global Markets