Central Bank of Russia to conduct currency transactions in H2 2024 with adjustment for sales of 8.4 bln rubles per day

MOSCOW. June 27 (Interfax) - The Central Bank of Russia will buy or sell foreign currency based on the amount of fiscal rule-based operations announced by Russia's Ministry of Finance adjusted for the amount to be sold totaling 8.4 billion rubles per day in H2 2024, from July 2 to December 28, the regulator said in a statement.

The Central Bank, starting from January 9, 2024, has been conducting operations in the domestic currency market aimed at replenishing and using the resources of the National Wealth Fund.

The daily volume of operations in H2 2024 will be determined on the basis of regular fiscal rule-based operations to buy/sell foreign currency as announced by Finance Ministry on the third business day of each month. The volume of specified operations will be adjusted for the balance of the following values:

- the difference between the amount of regular fiscal rule-based operations (1.529 trillion rubles) deferred from August 10 until December 31, 2023 and the amount of NWF resources spent in 2023 to finance the federal budget deficit outside the fiscal rule (2.9 trillion rubles). The specified amount assumes sales worth 1.371 trillion rubles (5.53 billion rubles/day, given the uniform distribution of the total amount over the entire 2024);

- foreign currency sales as part of net NWF investment in ruble-denominated eligible financial assets made over the period H1 2024 amounting to 376 billion rubles (2.87 billion rubles/day, given the uniform distribution of the total amount over H2 2024).

The Central Bank will publish information at the end of December 2024 on the amount of the adjustment of regular fiscal rule-based operations in H1 2025 taking into account Finance Ministry data on net NWF investment in ruble-denominated eligible assets in H2 2024 and expenditure of NWF funds to finance the federal budget deficit for 2024.

The Central Bank has been conducting t currency transactions in H1 2024 with adjustment for sales of 11.8 bln rubles per day in H1 2024. Additionally, in January 2024, the Bank of Russia sold currency as part of its mirroring of the investment of funds from the National Wealth Fund in H1 2023 (0.8 billion rubles per day).