The Central Bank of Russia will again authorize the sale of foreign currencies

Russia It will relax temporary capital control measures aimed at limiting the ruble’s decline by allowing people to buy foreign currency in cash and will also remove the commission for buying foreign currency through brokerage houses, the central bank said on Friday.

The ruble has rebounded on the Moscow Stock Exchange from record lows in March to levels seen before February 24, when Russia started what you call “a special military operation” in Ukraine and capital control measures stifled demand for foreign exchange.

Sight: Some 700 people have died in Chernigov since the arrival of Russian troops in Ukraine.

The rapid rise of ruble raised concerns about its economic and financial impact, at a time when analysts warned that the ruble volatile and strong could pose a threat to Russian income from the sale of raw materials abroad in exchange for foreign currency.

The central bank said that banks will be able to sell hard currency to individuals from April 18, but only notes they have received no earlier than April 9.

The central bank is also removing its requirement that banks limit the gap between the prices at which they offer to buy and sell currencies. However, it recommended that banks sell foreign currency to import-focused companies at a rate of no more than two rubles above the market rate.

The central bank said that people will be able to withdraw not only dollars but also euros from their accounts from April 11, although it kept the maximum amount that can be withdrawn until September 9 at the equivalent of $10,000.

The rapid recovery of ruble has raised questions about the durability of their advances. Anyone trying to buy foreign currency online at a bank in Russia or illegally at a currency exchange, or buying goods and services online denominated in foreign currency, will find that the real rate is considerably worse.

The central bank also said it will eliminate a 12% commission for buying foreign currency through brokerage houses, confirming earlier reports from Tinkoff Bank and Alfa Bank.

”We believe that this decision heralds the end of a spectacular rebound in ruble”, said analysts at CentroCreditBank.

In early March, with the ruble falling sharply as the United States and European countries imposed sanctions against Russia for sending soldiers to Ukraine, the central bank introduced a 30 percent commission on foreign currency purchases for individuals. Subsequently, the commission was reduced to 12%.

Currency purchase restrictions coupled with an order to convert 80% of their foreign exchange earnings to export-focused companies helped the ruble recover ground. On Friday, the Russian currency hit its highest level against the euro since June 2020 and jumped to a 2022 high against the dollar.

The move to scrap the fee along with the central bank’s decision to lower its key rate to 17% should reduce volatility in the ruble, according to analysts at VTB Capital.

The Russian central bank unexpectedly cut its benchmark rate from 20% on Friday and said further cuts were possible, at a time when emergency measures had contained the risk to financial stability, returned deposits to banks and helped limit the threat of inflation.

Source: Elcomercio

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