The Russian government supports the extension of measures on the mandatory sale of foreign currency earnings by the largest exporters until the end of the year. Information about this appeared in the official website government on January 23.
“The government positively assesses the effectiveness of the requirement introduced in October 2023 by presidential decree for the mandatory repatriation of foreign currency and the sale of foreign currency earnings under foreign trade contracts by some of the country’s largest exporters,” the message states.
This requirement was established to stabilize the exchange rate and based on data on low average daily sales of export earnings by companies, the government noted.
It is clarified that the measures are temporary – they are now set until April 30, 2024. Based on current results, the requirements will be proposed for extension until the end of this year.
“The measures introduced have shown their effectiveness and helped stabilize the situation in the domestic foreign exchange market by achieving a sufficient level of foreign exchange liquidity,” emphasized First Deputy Prime Minister of the Russian Federation Andrei Belousov.
Belousov noted that at the moment, in general, exporters are complying with the requirements. This made it possible to cover the shortage of foreign currency needed by importers to maintain supplies of products to Russia.
As a result of the measures taken, positive dynamics are noted – in October, the ruble exchange rate noticeably strengthened to +4.5% m/m. Today, the national currency has strengthened to about 90 rubles per dollar from peak values in October – then the rate was over 101 rubles per dollar.
On December 25, Bank of Russia Chairman Elvira Nabiullina said that by the end of November, the share of net sales of foreign currency earnings by exporters could reach 100%. In October, exporters sold 91% of foreign exchange earnings, in March – 98%, in October 2022 – 107%. Nabiullina noted that “the decree” on the mandatory sale of foreign currency earnings had some influence. She argued that the decision should be temporary as companies are currently learning to work around the restrictions.
On November 4, Russian Finance Minister Anton Siluanov said that measures to tighten controls over exporters’ currencies had worked. According to him, the ruble exchange rate will remain at its current parameters, and it will continue to be within these parameters.
On October 11, 2023, Russian President Vladimir Putin signed a decree introducing a six-month requirement for mandatory repatriation and sale of foreign currency earnings on the Russian market by individual exporters. It is noted that some companies are required to provide the Bank of Russia and Rosfinmonitoring with indicative plans and schedules that contain information on the purchase and sale of foreign currency on the domestic market. These companies belong to the sectors of the fuel and energy complex, ferrous and non-ferrous metallurgy, chemical and forestry industries, and grain farming.
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