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Russian Finance Ministry Will Buy $309 Million Of Foreign Currency

russian finance ministry
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EDITOR'S NOTE: Business Recorder reports that the Russian Finance Ministry recently announced it will be buying an extraordinary 502 billion roubles ($6.81 billion) worth of gold in the next month. Meanwhile, they also announced that they will be reducing their purchases of foreign currency, down to 22.8 billion roubles ($309 million) between Dec. 7 and Jan. 13. This has a lot to do with the recovery of oil prices, but it also certainly seems like it also has a lot to do with Russia’s growing fear of rising global inflation 

MOSCOW: Russia's finance ministry said on Friday it would buy 22.8 billion roubles ($309 million) worth of foreign currency a day between Dec. 7 and Jan. 13, a slight decrease in the amount of daily operations from the previous month.

The finance ministry said its regular FX and gold purchases on the market will total 502 billion roubles ($6.81 billion) over the month. A Reuters poll of analysts predicted that FX buying would total 475 billion roubles.

In the previous period, between Nov. 9 and Dec. 6, the ministry had planned to buy the equivalent of 518.2 billion roubles, or 25.9 billion roubles a day.

A recovery in prices for oil, Russia's key export, has enabled Russia to return to foreign currency purchases this year.

In 2020, Russia was selling FX, which helped to limit losses in the rouble amid a slump in oil prices, the COVID-19 pandemic and geopolitical risks.

Originally posted on Business Recorder.

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