Russian Central Bank to stop buying foreign currency

In a written statement from the Central Bank of Russia, it was stated that the bank will stop its foreign exchange purchases in the domestic market from August 10 until the end of the year, in accordance with the budget rules.

Pointing out that the decision was taken to reduce the volatility in the financial markets, it was noted that foreign exchange purchases could be resumed depending on the situation in the financial markets.

The dollar/ruble parity crossed the 98 level for the first time since March 2022 today.

According to Russia’s budget rules, foreign exchange is sold from the National Welfare Fund when oil and natural gas revenues decrease, while foreign exchange is purchased when incomes increase.

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