10 Mar 2020 10:03

CBR announces forex intervention on domestic market

MOSCOW. March 10 (Interfax) - The Central Bank of Russia (CBR) has decided to support the ruble following the collapse of oil prices through intervention on the forex market.

"The Bank of Russia has decided to begin pre-emptive sales of foreign currency on the domestic market on March 10 within the context of the implementation of the fiscal rule mechanism taking into account the actual oil price and its influence on the transactions of the National Welfare Fund (NWF) in April. These transactions will be made prior to the start of regular sales of foreign currency from NWF funds," the CBR said in a statement.

The CBR has not disclosed the scope of the planned intervention.

"This decision was made in order to increase the predictability of the actions of the monetary authorities and reduce the volatility of financial markets amid the significant changes on the world oil market," the CBR said.

The CBR reiterated that it "is monitoring the situation on the financial market and is prepared to use additional instruments in order to maintain financial stability."

Earlier on Monday the CBR said that it is suspending forex purchases on the domestic market as part of the implementation of the fiscal rule mechanism for 30 days.