Bank of Russia commentary on 2025 H1 transactions with NWF resources in domestic FX market
The Bank of Russia has been following the previously announced procedure for conducting transactions in the domestic FX market to replenish and use the resources of the National Wealth Fund (NWF), including all transactions carried out with such resources in 2024. Therefore, the Bank of Russia announces the amounts of the transactions to be performed in the domestic FX market from 9 January to 30 June 2025.
On 9 January 2025, the Bank of Russia will resume regular fiscal rule-based operations in the domestic FX market that have been suspended since 28 November 2024.
The daily amount of transactions in 2025 H1 will be calculated based on the amounts of the purchase or sale of foreign currency as part of regular fiscal rule-based operations as announced by the Russian Ministry of Finance on the third business day of each month. Such amounts will be adjusted for the net value of:
— The difference between the amount of regular fiscal rule-based operations (₽117.6 billion) deferred from 28 November until 31 December 2024 and the amount of NWF resources spent on financing the budget deficit outside the fiscal rule in 2024 (₽1,300.0 billion). The specified amount assumes sales worth ₽1,182.4 billion (₽4.79 billion/day, given the uniform distribution of the total amount over entire 2025).
— Foreign currency sales as part of net NWF investment in ruble-denominated eligible financial assets made in 2024 H2 in the amount of ₽476.0 billion (₽4.07 billion/day, given the uniform distribution of the total amount over 2025 H1).
Thus, considering the amount of fiscal rule-based foreign currency purchases in the period from 6 December 2024 to 14 January 2025 (₽5.45 billion/day) announced by the Russian Ministry of Finance, the Bank of Russia will carry out net sales of foreign currency in the amount of ₽3.41 billion/day between 9 and 14 January 2025.
From 15 January to 30 June 2025, the Bank of Russia will buy/sell foreign currency based on the amount of fiscal rule-based operations announced every month by the Russian Ministry of Finance adjusted for the amount to be sold totalling ₽8.86 billion/day.
At the end of June 2025, the Bank of Russia will publish information on the amount of the adjustment of regular fiscal rule-based operations in 2025 H2 taking into account the data of the Russian Ministry of Finance on net NWF investment in ruble-denominated eligible assets in 2025 H1 and the amount of NWF resources spent on financing the federal budget deficit outside the fiscal rule in 2024.