Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS

The Central Bank Announced a New Mechanism to Combat Volatility in the Foreign Exchange Market
19.03.2020 22:25
The Central Bank Announced a New Mechanism to Combat Volatility in the Foreign Exchange Market

The Central Bank announced a new mechanism to combat volatility in the foreign exchange market - it will sell the currency from the NWF intended for the purchase of a controlling stake in Sberbank. After a statement in the first hour of trading on the Moscow Exchange, the dollar depreciated by more than a ruble.

      After the black Wednesday for the ruble, the Central Bank announced new measures to support the Russian market: on Thursday, the regulator began selling foreign currency from the National Wealth Fund as part of a deal to sell a controlling stake in Sberbank to the government. That is, the regulator will sell the NWF currency at the request of the Ministry of Finance so that the ministry later pays in rubles for Sberbank.

      “Additional sales of the Bank of Russia are calculated on the basis of full reimbursement of the falling supply of currency in the domestic foreign exchange market due to a decrease in export earnings from the sale of oil, oil products and natural gas when prices drop below $ 25 per barrel of the Urals brand,” the regulator said in a statement.

      Daily sales amounts will vary and depend on the deviation of the price of Urals crude below $ 25 per barrel. If this level is exceeded, operations will not be performed. The regulator will do this until September 30, 2020. And the sale mechanism after this date will be announced additionally.

      In parallel, the regulator will continue to sell the currency within the framework of the existing budget rule - with the price lowering below $ 42.4 per barrel.

Author: Anna Dorozhkina

Tags: Central bank     

Next Previous

You might also find interesting:

Comment on our site

RSS   twitter      submit

Russian tourism  Repressions  Yekaterinburg Monuments  the Crimea  Regional Cuisines  wildfires  Russian sputnik  Football  incident  Transportation  Moscow  Prince Harry  Giles Deacon  religious tourism  Skolkovo  Russian business  Russian political parties  Russian directors  Alisher Usmanov  St. Petersburg  The Arctic  Vedomosti  Russian ballet  Vladivostok Museums  Yevgeni Grishkovetz  Mercedes-Benz Fashion Week Russia  Andrey Bartenev  Spartak Moscow  Russian science  Education and Science Minister  Yakutsk  Masha and the Bear  Russian economy  Russian scientists  Russian courts  Russian Film Directors  Vladimir the Great  Russian Cinema  Exhibitions in Moscow  book hotels in Russia  WORLDLOPPET  Museums of Russia  Silicon Valley  Film Distribution  Kazan Gifts  aircraft  St. Petersburg Theatres  Cancer  Labinsk  Russian media 

Travel Blogs
Top Traveling Sites