The restriction would attempt to strengthen the heavily weakened ruble.
Russian the administration may reimpose partial restrictions on capital movements, tells news agency Bloomberg. The restriction would attempt to strengthen the heavily weakened ruble.
Bloomberg reports, based on its anonymous sources, that the Russian government and Russian export companies discussed a proposal enabling forced sales of export earnings at a meeting on Monday.
The meeting in question was held before the Central Bank of Russia announced on Monday evening that it would hold an extra interest rate meeting on Tuesday.
The government and export companies failed to reach an agreement on the restrictions at their meeting on Monday, and negotiations are scheduled to continue at another meeting later this week, Bloomberg reports.
Russian At its emergency meeting on Tuesday, the central bank decided to raise its key interest rate by 3.50 percentage points to 12.00 percent. The interest rate hike may increase capital flows to Russia and support the ruble.
The exchange rate of the Russian ruble collapsed in the spring of last year after the country attacked Ukraine and Western countries imposed strong economic sanctions against Russia.
However, the country’s administration managed to stabilize the exchange rate of the ruble through forced sales of export earnings, restrictions on bank transfers of foreign currency and other restrictions on capital movements. Since then, the restrictions have been lifted.
The Russian ruble has weakened strongly recently. At the beginning of the current year, the value of one US dollar was more than 70 rubles. This week, the dollar has gained about a hundred rubles.
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