Russia to Boost FX Flows
World Economy

Russia to Boost FX Flows

Russia’s Prime Minister Dmitry Medvedev said that the government and central bank were preparing measures to boost foreign currency sales in response to the weakening ruble.
His comments suggest Russia is again putting pressure on major exporters to help buttress the ruble by selling more of their foreign currency, a tactic used last December when the government ordered state exporters to sell part of their foreign currency over an agreed time frame, Arab News reported.
“Naturally we, I mean the government, will help the central bank in the sense of additional foreign currency inflows,” Medvedev said. “In the near future we will launch foreign currency sales by our largest exporters, which will affect the ruble’s rates. So we, together with the central bank, will undertake a definite collection of agreed measures.”
It was not clear what demands the government has made of exporters this time nor how much difference they would make in practice.
Exporters increase foreign exchange sales near the end of each month in any case because they need rubles to pay monthly taxes.
Medvedev said it was incorrect to think the government was increasing its control over exporters’ foreign currency sales.
“We never weakened this control, and in future we don’t intend to weaken it,” he said, adding he had met with exporters and that the central bank also does so regularly to discuss their foreign exchange sales.
Such sales are the most important source of demand for the ruble, which has shed 18% against the dollar over the last month as the price of Russia’s main export, oil, tumbles on world markets.
Now worth 69.11 per dollar, the ruble is approaching its 2015 low of 71.85 reached on Jan. 30, and its all-time low of 80 reached last December.


Short URL : https://goo.gl/RnjsOe
  1. https://goo.gl/UOGuu4
  • https://goo.gl/SPSOa6
  • https://goo.gl/zKoLKh

You can also read ...

China and India continue to remain the most promising investment destinations in 2017.
Developing Asia is expected to witness a 15% increase in...
Thai CB Retains Key Rate
Thailand’s central bank on Wednesday left its key interest...
Elon Musk, Kevin Plank, Bob Iger, Richard Trumka, Kenneth Carleton Frazier
The honeymoon is definitely over. When US President Donald...
Brazil Raises Deficit Ceiling
Brazil is raising its deficit ceiling for this year and 2018...
US Household Debt at $12.8 Trillion
US household debt reached a new record in the second quarter,...
Riksbank is under pressure to tighten its ultra-loose monetary policy.
Underlying inflation topped the Swedish central bank’s target...
At 310% GDP, China’s banking sector is above the advanced economy average and nearly three times  the emerging market average.
China's economy is looking good enough that the International...
Eurozone Q2 Growth Revised Upwards
The eurozone economy expanded as initially estimated in the...