Central Bank allows exporters up to 120 days to sell forex

MOSCOW. May 26 (Interfax) - The Central Bank of Russia has extended the deadline for exporters to sell foreign exchange from 60 to 120 working days in a further relaxation of currency control measures.

"The Bank of Russia's board of directors, in order to broaden the opportunities for exporters to manage foreign exchange liquidity, has decided to further relax the requirement for the mandatory sale of foreign currency," the regulator said in a press release.

The decision applies to the foreign currency received and for which mandatory sale has not been carried out, regardless of the date it was credited to a resident's account with an authorized bank, it said.

The deadline for exporters to sell currency was previously extended from three to 60 working days.

The Central Bank also said foreign currency accumulated by exporters might not be subject to mandatory sale within 120 working days of the date it is credited to accounts, provided that it is used to fulfill obligations under import contracts. This decision was made by a sub-commission of the government's commission for monitoring foreign investment.

A requirement for exporters to sell 80% of their FX proceeds was introduced by a presidential decree, No. 79, dated February 28. Another decree in March permitted that limit to be changed with the consent of the authorities. The limit was lowered to 50% at the start of this week.