Russian Finance Ministry to purchase currency worth 195.5 billion rubles

TASS Russian News Agency | Dec 4, 2019 at 2:57 PM

MOSCOW, December 4. / TASS /. The Russian Ministry of Finance will allocate 195.5 bln rubles for the purchase of foreign currency from December 6 to January 14, using additional oil revenues, the ministry said in a statement on their web site on Wednesday.

Daily, 9.3 bln rubles will be allocated for the purchase of foreign currency.

According to forecasts of the Finance Ministry in December, additional budget revenue from oil will amount to 201.9 billion rubles.

A month earlier, the Ministry of Finance planned to allocate 228.2 bln rubles for the purchase of foreign currency between November 8 and December 5, 2019.

In accordance with the budget rule, the Ministry of Finance buys a monthly currency for additional income from the sale of oil for more than $ 40 per barrel; the Ministry of Finance sends this currency to the reserves. Russia's Central Bank acts as an agent of the Ministry of Finance for procurement in the open market.

In August 2018, the Central Bank temporarily abandoned this practice due to market volatility and a sharp weakening of the ruble due to U.S. sanctions; the Ministry of Finance began to buy foreign currency directly from the Central Bank without making equivalent transactions in the domestic market. Since January 15, 2019, the Central Bank has returned to the foreign exchange market, and since February 1, it has begun to purchase foreign currency postponed last year for the Ministry of Finance (these operations will increase the daily volume of foreign currency purchases in the domestic market by 2.8 billion rubles).