20 Jul 2022 17:20

Russian Central Bank allows unfriendly banks to buy/sell one foreign currency in exchange for another, ruble transactions still banned

MOSCOW. July 20 (Interfax) - The Russian Central Bank has given nonresident banks from unfriendly countries permission to conclude purchase and sales transactions exchanging one foreign currency for another on the Russian foreign exchange market, as well as the relevant deliverable currency forwards and swap agreements, the Central Bank said.

The prices in these agreements may not deviate from the prices of similar instruments in Russian stock trading and on international markets by more than 2% at the time of conclusion. "The new decision will facilitate Russian banks being able to better satisfy demand from companies and citizens for specific foreign currencies," the Central Bank said.

A ban has been in effect on all nonresidents from unfriendly countries buying and selling foreign currencies for both rubles and other foreign currencies. The ban will remain in effect on ruble transactions and transactions by nonresidents that are not banks, it said.

The Central Bank has also canceled the 30% limit on advance payments in favor of nonresidents on import contracts for services, works, and the results of intellectual activity that has been in effect since April. This decision is meant to support foreign economic activity and the creation of conditions for setting up new logistics chains for imports, it said.