The Russian President, Vladimir Putinresponded this Monday, February 28, to Western sanctions for the invasion of Ukraine and decreed a ban on residents in Russia of transferring foreign currency abroad as a way of offsetting the fall in the value of the ruble.
In addition to this measure, Russian exporters they will also be forced to convert 80% of their income earned in foreign currencies into rubles from January 1, 2022.
The Bank of Russia sold $1 billion in foreign exchange markets on Thursday, February 24, Nabiullina said, but did not intervene on Monday, February 28, Reuters noted.
The Russian currency lost a third of its value in offshore trade at one point, the biggest drop in its history. It was down 16% to 98,235 in the afternoon on Moscowcompared to 107.0642 in the offshore market, a loss of 22%, according to Bloomberg.
In that sense, the central bank increased its key rate to 20%, due to the significant deviation of the rate of the ruble, and the central bank’s options for using its gold reserves and foreign exchange.
Dmitry Polevoy, chief investment officer at Locko Invest, estimated that Russian exporters could offer $44 billion to $48 billion a month to back the ruble as long as oil prices remained at current levels and there were no sanctions on Russian exports. Energy.
Source: Larepublica
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