Bank of Russia’s comment on fiscal rule-based operations in FX market
The Bank of Russia has decided that, from 10 August through 31 December 2023, it will not buy foreign currency in the domestic market to mirror regular fiscal rule-based operations conducted by the Ministry of Finance of the Russian Federation. This decision is aimed at reducing volatility in financial markets.
The Bank of Russia will make a decision on resuming fiscal rule-based foreign currency purchases in the domestic market depending on the actual situation in financial markets. The decision on the foreign currency purchases in the domestic market suspended in 2023 will be made after the Bank of Russia resumes the mirroring of fiscal rule-based regular purchases. The suspended purchases can be made during 2024 and further on.
Nevertheless, the Bank of Russia will continue operations to sell foreign currency in the domestic market that are related to the use of the National Wealth Fund’s resources for their investment in permitted financial assets in 2023 H1 in the amount of ₽2.3 billion per day.