From October 1, the Central Bank of the Russian Federation will start selling the rest of the currency for 185 billion rubles. in equal shares daily

From October 1, the Central Bank of the Russian Federation will start selling the rest of the currency for 185 billion rubles. in equal shares daily

From October 1, the Central Bank of the Russian Federation will start selling the rest of the currency for 185 billion rubles. in equal shares daily

The Bank of Russia has once again confirmed its intention to sell the rest of the currency for 185 billion rubles gradually, these funds in October-December 2020 will be sold in equal shares daily.

“We will sell the corresponding volumes of currency in equal shares daily from October 1 to December 31, 2020,” Central Bank Deputy Chairman Alexei Zabotkin said at an online conference on Thursday.

The Bank of Russia, within the framework of the mechanism announced on March 19, 2020, carried out transactions for the sale of foreign currency related to the sale of a block of shares of Sberbank (MCX: SBER), only if the price of Urals oil fell below $ 25 per barrel. This mechanism is valid until September 30, 2020, but taking into account the prevailing price situation in the oil market, these operations were not carried out after May 12.

The Central Bank will offset the volume of foreign currency sales under the Sberbank deal with the volume of foreign currency purchases postponed in 2018 and in March-April 2020, as well as with the volume of proactive foreign currency sales made in March-April.

The final net volume of foreign currency, estimated in ruble terms at RUB 185.4 billion, is planned to be evenly sold on the domestic market during the fourth quarter of 2020 in addition to regular operations under the budget rule, the regulator explained earlier.

As part of the sale of Sberbank, the Bank of Russia received from the National Wealth Fund (NWF) currency in the amount of 2 trillion 139.4 billion rubles. From this amount, the proactive sales of foreign currency and foreign currency sales carried out in March-May 2020 as part of the Sberbank transaction (RUB 504.2 billion), foreign currency purchases postponed in March-April 2020 under the budget rule (RUB 126 billion) are deducted, and also the balance of foreign currency purchases deferred in 2018 (1 trillion 323.8 billion rubles). Thus, the remainder of the currency, scheduled for sale in October-December this year, amounted to 185.4 billion rubles.

The Bank of Russia conducts transactions with foreign currency on the market within the framework of the budget rule mechanism: when the price of oil rises above the cut-off price, currency purchases are made, and when it falls below this level, sales are made.

Regular operations to sell foreign currency within the framework of the budgetary rule began on April 7, before that the Bank of Russia had been carrying out proactive operations since March 10.

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