The Central Bank explained the discrepancy in exchange rates in August by problems with arbitration
In August, the ability of a number of players to conduct arbitrage transactions (allowing them to earn on the difference in exchange rates in different markets) on the Russian market was reduced, which is why the official exchange rates of the dollar and euro grew and fell by several percent per day, while the yuan was stable. This is stated in review Central Bank “Monetary conditions and the transmission mechanism of monetary policy”.
Over the month, the ruble weakened against the main foreign currencies by 1.8-8 percent, but average rates changed to a lesser extent. The Russian currency weakened against the dollar by 1.9 percent, against the euro by 3.2 percent, and the rate remained the same against the yuan.
People started talking about anomalies in the currency market in Russia in mid-August. Market participants noted that sharp jumps in the dollar and euro do not affect the yuan, which casts doubt on the adequacy of the rates.
Market participants even suggested that the Central Bank abandon the yuan exchange rate setting through the Moscow Exchange and unify the process to determine all three major currencies through over-the-counter trading. However, the regulator expressed confidence that the trading reflects the real state of affairs.
This week, oddities have already arisen with the Chinese currency. In one day, it jumped by 6.5 percent, while the yuan futures were trading significantly lower than on the spot, which, as economists note, cannot happen with adequate exchange rate formation.
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