In mid-September, the Central Bank will accelerate the daily volume of currency sales from 2.3 billion to 21.4 billion rubles. The measure is necessary to repay the currency issue of Eurobonds, the Central Bank noted.
So, from September 14 to September 22, the Central Bank will sell foreign currency for 150 billion rubles. Daily sales for this period will amount to 21.4 billion instead of 2.3 billion rubles previously planned, RBC notes. Thus, the regulator intends to reduce volatility in the foreign exchange market.
To determine the volume of sales, the regulator “carried out an analysis of the current structure of Eurobond holders and their potential demand for foreign currency”, as well as consultations with banks that hold a significant part of this bond issue. The remaining amount of currency that needs to be sold under this mechanism will be evenly sold from September 25, 2023 to January 31, 2024, the Central Bank noted. They added that in the next two years there will be no large payments on foreign currency Eurobonds of the Russian Federation, comparable in volume to the issue redeemed this year.
The media recalls that in August, when the budget switched from selling yuan to buying due to the growth of these revenues, the regulator stopped such purchases until the end of the year to reduce the volatility of the ruble, which at its peak fell to 100 rubles. per dollar or less. In parallel, the Central Bank launched the sale of yuan in July, regardless of oil and gas revenues. The regulator explains the growth in the sale of yuan by the need to pay off the currency issue of Eurobonds on September 16.
Analysts cited by the publication note that the decision of the Central Bank is intended to compensate for the risks of paying off Eurobonds of the Ministry of Finance, and at the moment “should stabilize the ruble exchange rate, given that the tax period in September will be with greater export earnings.” According to their forecasts, the ruble may strengthen in the second half of the month, but only slightly. The ruble will remain in the range of 90-100 rubles. per dollar by the end of this year, and the average rate in the fourth quarter will be 98 rubles, experts believe.
Source: Rosbalt
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