Press Service

The Central Bank of the Russian Federation (Bank of Russia)

Press Service

12 Neglinnaya Street, Moscow, 107016 Russia;

On Bank of Russia operations on domestic FX market

The Bank of Russia External and Public Relations Department informs that the Bank of Russia modified its FX policy mechanism to be prepared for the implementation of the new algorithm for accumulation (expenditure) of Reserve fund and National wellbeing fund in foreign currencies by the Federal Treasury.

Effective from 1 October the correction of FX policy mechanism took place which implies that parameters of the Bank of Russia FX currency operations on domestic market are determined by taking into account the Federal Treasury operations for accumulation (expenditure) of sovereign funds in foreign currencies. In particular, the amounts of the Bank of Russia FX operations on domestic market aimed at smoothing the ruble exchange rate volatility will be increased or decreased by the amount equal to the Federal Treasury FX purchases (sales) with the Bank of Russia related to accumulation (expenditure) of sovereign funds in foreign currencies.

Such a correction of the FX policy mechanism allows to transfer the demand for or supply of foreign currency to domestic FX market and is presumed to be one of the steps in creating conditions for transition towards flexible exchange rate regime. This modification also allows softening the influence of the Federal Treasury operations, related to accumulation or expenditure of sovereign funds in foreign currencies, on the banking sector liquidity.

The information on the Bank of Russia FX operations on domestic market, including operations related to accumulation or expenditure of sovereign funds in foreign currencies, will be published by the Bank of Russia on a daily basis.

01 October 2013

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