It became known that the CBR will stop selling currency on the market

the Bank of Russia will continue to sell the currency in the market, in accordance with the budget rule and on the basis of instructions of the Ministry of Finance, and will return to buy when the conditions are appropriate. About it today on a press-conferences were declared by the Chairman of the Central Bank Elvira Nabiullina.

the Controller performs foreign exchange transactions in the interest of the Ministry of Finance: the budget rule in the oil price above the upper limit cut-off (in 2020 is $42.4 per barrel) the additional revenues of the budget is allocated for purchase of foreign currency and translated into the Bank accounts of Russia for the subsequent transfer to FNB. In cases when the price of oil is below a prescribed rule level currency, in contrast, is sold, and the proceeds are used to Finance the budget deficit, reports RIA “Novosti”.

Nabiullina also said that the Central Bank sold on the market for $4.3 billion currency (300 billion) from the money received in the transaction for the purchase of a controlling stake to Sberbank by the government. Implementation of the currency has had a moderating influence on the ruble, RBC says.

Recall that the Russian national currency in March of this year has significantly depreciated against the dollar and the Euro. Strong pressure on the rouble had a General panic in the financial markets due to the rapid spread of the pandemic coronavirus infection COVID-19 and concerns about its impact on the global economy, and a collapse in oil prices.

So, the strong devaluation of the Russian currency occurred on March 7 on the international Forex market, after the day before the deal collapsed OPEC+, — countries of the Alliance are unable to agree on cutting oil production, nor of the extension of the deal for a longer period (1 April 2020). Then, on March 9, 2020, the financial and oil markets suffered “black Monday”, and on 18 March, the market embraced a “black Wednesday” with yet another collapse of oil prices, the Russian national currency in the course of trading on the Moscow stock exchangese updated (at the time) a record low against the dollar and Euro since February of 2016, 81 and 88 million, respectively.

we Add that the real effective exchange rate of the ruble (inflation-adjusted) in April 2020 rose 0.1 percent against foreign currencies relative to the previous month. In this case the real rate of the ruble against the dollar fell during this period by 1.6%, the Euro by 0.6%. However, for the first 4 months of the current year the real effective exchange rate of the ruble fell by 11%, and the dollar — by 14.3%, and the Euro by 12.9%.

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