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Russian Central Bank suspends foreign exchange purchases within fiscal rule for 30 days

TASS: Russia’s Central Bank has decided to suspend purchases of foreign currency on the domestic market within the fiscal rule mechanism for 30 days, the regulator said in a press release on Monday.

"The Bank of Russia has decided not to purchase foreign currency on the domestic market within implementation of the fiscal rule mechanism for 30 days. The decision is aimed at making the actions of monetary authorities more predictable and reducing volatility on the financial markets amid major changes on the global oil market. It covers both regular foreign exchange purchases and purchases postponed in 2018," the press release said.

The decision on resumption of transactions with foreign currency will be made considering the situation on the financial market in March this year, the regulator added.

The Central Bank is monitoring the situation on the financial market, it noted, adding that it is ready to use additional instruments to support stability on financial markets.

As part of the fiscal rule, the Finance Ministry made monthly purchases of currency, using extra revenues received from higher oil price compared with the one priced into the budget, which was allocated to reserves. The Central Bank acts as the Finance Ministry’s agent for currency purchases on the open market.


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