The Russian Finance Ministry said on Friday it would sell 8.9 billion roubles ($126.6 million) worth of foreign currency a day between Feb. 7 and March 6, an almost three-fold increase in the volume of daily operations from the previous month.
After a months-long hiatus, Russia resumed foreign currency interventions in January, selling yuan rather than what it terms “unfriendly” Western currencies, underscoring the growing importance of China’s currency in Moscow’s efforts to ensure economic stability amid sanctions.
The finance ministry said its regular FX sales on the market will total 160.2 billion roubles ($2.28 billion) over the coming month – the highest level of FX sales for the last three years, according to analysts at BCS Express. A Reuters survey of analysts had predicted they would total 79.75 billion roubles.
Between Jan. 13 and Feb. 6, the ministry had planned to sell 54.5 billion roubles worth of yuan, to compensate for lower oil and gas revenues.
Russia halted FX interventions last year as Western nations imposed sweeping sanctions against Moscow, included the freezing of about $300 billion in foreign exchange reserves, after it launched what it calls its special military operation in Ukraine.
The government carries out FX interventions to cover shortfalls – or build up reserves in the case of a surplus – in earnings from Moscow’s vital oil and gas exports.
This report’s information was first seen on REUTERS; to read more, click this link.
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