Easing requirements for mandatory sale of FX revenue to make it easier for businesses to remit payments - Central Bank of Russia

MOSCOW. June 21 (Interfax) - Easing requirements for the mandatory sale of forex revenue will make it easier for businesses to remit payments, the Central Bank of Russia's press office told reporters.

"Exchange rate stability depends on fundamental factors, the ratio of exports and imports. At the same time, easing the requirements for the mandatory sale of foreign currency revenue will make it easier for businesses to make payments," it said.

The Russian government said on Friday that it had decided to relax its requirement for the mandatory repatriation of foreign currency earnings by the largest Russian exporters, recently extended for one year.

Previously, exporters were required to credit at least 80% of foreign currency received under foreign trade contracts to their accounts in authorized banks; now the threshold has been reduced to 60%, the government press service said.

"The decision was made due to the stabilization of the national currency exchange rate and the achievement of a sufficient level of foreign exchange liquidity," the statement said.

The requirement for mandatory repatriation of currency and sale of foreign currency proceeds was introduced by presidential decree in October 2023. The measure is valid through April 30, 2025.

Some of the requirements were relaxed when the requirement was extended, for example, the deadline for exporters to credit FX revenue to their accounts was lengthened from 90 to 120 days, from the date of receipt of goods and services by non-residents. But the main thresholds to credit at least 80% of revenue and sell at least 90% of this was not changed.

The requirements apply to 43 groups of companies operating in the fuel and energy complex, ferrous and non-ferrous metallurgy, chemical and forestry industries, and grain farming.