23 May 2022 11:12

CBR denies reports it is purchasing FX to curb sharp gains for ruble

MOSCOW. May 23 (Interfax) - The Central Bank of Russia (CBR) is denying reports that the regulator is buying FX from exporters via intermediaries in order to temper sharp gains for the ruble.

"In response to your query, we inform you that the information does not correspond to reality," the CBR's press service told Interfax.

The Central Bank of Russia (CBR) has begun buying foreign currency from exporters through other market participants in order to keep the ruble from strengthening uncontrollably, business daily Vedomosti reported on Monday, citing sources.

The sources did not disclose the details of how the CBR is making the purchases and how exactly they are affecting the forex market.

The CBR has begun making such forex purchases in order to curb the rapid appreciation of the ruble, since there is not enough demand on the market for the export earnings being sold, one of the paper's sources said.

After collapsing in late February and early March, the ruble began to quickly strengthen with the imposition of currency controls and mandatory sales of export earnings. At present, under a presidential decree, exporters are supposed to sell 80% of their forex earnings within two months; initially they had to do so within three days.

The CBR proposed at the end of April to lower the requirement for mandatory sales by resource exporters, who generate most forex earnings, from 80% to 50%, but this proposal has not been implemented yet.