CBR says exporters cut currency sales to $11.9 bln in Aug, individuals boost purchases to 98 bln rubles

MOSCOW. Sept 6 (Interfax) - Russia's largest exporters cut currency sales 1% to $11.9 billion in August from to $12 billion in July, the Central Bank of Russia said in its review of financial market risks.

The ratio of net currency sales to forex export revenue of the largest exporters rose 8 percentage points month-on-month to 116% in June 2024 on the back of sales of currency previously accumulated to pay dividends. The CBR provides the information with a delay.

Individuals boosted currency purchases 2.5-fold to 98.1 billion rubles in August from 39.0 billion rubles in July. Citizens purchased currency totaling only 3.1 billion rubles in August 2023 amid the weakening ruble, and totaling 133.9 billion rubles in August 2022. The main currency purchases were effected in Russian banks.

The situation on the foreign currency cash market remained stable for most of the month. However, currency buy/sell spreads had increased to 4.11 rubles per U.S. dollar and 4.17 rubles per euro by the end of August.

The CBR said that repeatedly rising volatility in August replaced stabilization on the currency market observed in July. The official exchange rate of the ruble to the U.S. dollar weakened 5.6% over the month, and the exchange rate of the ruble to the yuan fell 1.8%. The yuan weakening against the U.S. dollar on the Russian market occurred amid a change in the structure of currency trading, with a number of participants starting more actively to conclude transactions on the over-the-counter market, as well as the restructuring of settlement channels amid the sanctions, the regulator said.