Russia's biggest exporters cut forex sales to two-year low of $7.3 bln in May - CBR
MOSCOW. June 10 (Interfax) - Russia's largest exporters reduced forex sales by 27% to $7.3 billion in May from $10 billion in April amid the continued decline of world oil prices and fewer working days than in the previous month, the Central Bank of Russia (CBR) said in a report on financial market risks.
The May figure for forex sales by exporters was the lowest since the middle of 2023, the CBR said.
Average daily net forex sales by exporters fell 11% to $406 million in May from $455 million in April.
Net forex sales as a share of the largest exporters' forex revenue amounted to 97% in March (the CBR provides this data with a lag), down by 2 percentage points from February.
"Demand for forex on the domestic market continued to gradually decrease in May, which provided additional support for the ruble. The decrease in demand is taking place against the backdrop of tight monetary policy, which helps to increase the appeal of ruble assets," the CBR said.
Bank clients (companies, nonbank financial institutions and nonresidents) reduced spending on purchasing forex by 12% to 1.6 trillion rubles in May from 1.8 trillion rubles in April, the lowest figure since June 2024 and down 35% from the monthly average of 2.5 trillion rubles in the first quarter of 2025.
Individuals spent 111 billion rubles on forex purchases on the exchange and over-the-counter markets in May, 62% more than the 68.5 billion rubles spent in April. The CBR attributes the steep increase to the continued appreciation of the ruble and the approaching vacation season (individuals purchased 206 billion rubles worth of forex in May 2024 and 133.8 billion rubles worth in May 2023).
In the first five months of 2025, individuals bought forex for a total of 386 billion rubles, almost 50% less than in the same period of 2024, the CBR said.
"And there is no significant flow of individuals' funds into quasi-forex instruments: the amount of investment did not exceed 50 billion rubles in the first quarter of 2025 (demand for forex is not being replaced by instruments on which payments are linked to the exchange rate)," the CBR said.
The ruble's appreciation against the main foreign currencies gradually continued in May, with an upward dynamic seen throughout the whole month. The ruble has been strengthening for six consecutive months already, since December 2024.
"The main factor affecting the ruble continues to be the strong appeal of Russian assets for individuals and companies amid conditions of tight monetary policy," the CBR said.
The U.S. dollar fell 3.6% to 78.62 rubles and the yuan slid 2.8% to 10.89 rubles in May, the lowest figures since mid-May 2023 and mid-March 2023, respectively.
