The Central Bank of Russia has announced its plan to sell foreign currency worth 150 billion rubles ($1.5 billion) on the foreign exchange market from September 14 to September 22, according to statements released today. This move is in response to the upcoming redemption of the Russian Federation Eurobond issue, scheduled for September 16.
The bank's decision aims to satisfy potential additional demand for foreign currency and reduce volatility in the foreign exchange market during this period. Following the redemption of the bonds, some Eurobond holders may show increased demand for foreign currency, the regulator noted.
This acceleration of previously announced operations mirrors transactions related to the National Wealth Fund's (NWF) money investment in the first half of 2023. The daily volume of these operations will reach 21.4 billion rubles, a significant increase from the usual 2.3 billion rubles.
After this period, any remaining foreign currency sales as part of the mirroring transactions related to the NWF funds investment will be evenly spread between September 25, 2023, and January 31, 2024, according to the Central Bank of Russia.
Earlier, Elvira Nabiullina, the head of the Central Bank of Russia, had stated that the financial regulator plans to extend restrictions on currency transactions in September.
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