Russian MinFin to cut forex/gold purchases by almost 80% to 1.12 bln rubles/day as of Aug 7

MOSCOW. Aug 5 (Interfax) - Russia's Finance Ministry plans to spend 24.65 billion rubles, or the equivalent of 1.12 billion rubles per day on purchases of foreign currency/gold under the fiscal rule from August 7 to September 5, the ministry said in a statement.

This is 79% less than the daily amount spent from July 5 to August 6, when the ministry is spending 5.4 billion rubles per day or a total of 123.8 billion rubles.

The Finance Ministry expects 166.72 billion rubles of windfall oil and gas revenue in August. There was an oil and gas revenue shortfall of 142.07 billion rubles in July.

The new data makes it possible to estimate the volume of operations conducted by the Bank of Russia on the currency market related to the replenishment and use of the National Wealth Fund.

The Central Bank is buying or selling foreign currency based on the amount of fiscal rule-based operations announced by the Finance Ministry adjusted for the amount to be sold totaling 8.4 billion rubles per day in H2 2024, from July 2 to December 28. The Central Bank conducted currency transactions with adjustment for sales of 11.8 bln rubles per day in H1 2024.

Given the transaction volumes the Finance Ministry has announced for August 7 to September 5, the Central Bank will be selling 7.28 billion rubles in currency per day - its sales were around 3 billion rubles per day for July 5-August 6, 8.1 billion rubles for June 7-July 1 and 4.7 billion rubles for July 1-4.