Russia may buy ‘friendly countries’ currencies to weaken ruble, says minister

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Russia may start buying the currencies of “friendly countries” and using those wallets to influence the dollar and euro exchange rate as a means of combating sharp gains in the ruble, the country’s finance minister said on Wednesday. fair (29).

The ruble rose to seven-year highs, boosted by capital controls that include restrictions on Russians withdrawing foreign currency savings, thus eroding Russia’s export income by depressing the value of the dollar and euro from overseas sales of commodities and other goods.

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Authorities in Russia stopped buying foreign currency through market interventions in February under a budget rule designed to protect against external shocks.

The ruble’s declines were triggered by fears of tough Western sanctions in the run-up to what Moscow called a “special military operation” in Ukraine, which began on Feb.

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Finance Minister Anton Siluanov said that under a “modified” budget rule, maintaining the central bank’s policy of operating a floating exchange rate, his ministry was ready to step in and accumulate currencies from “friendly countries” in its reserves. .

“Through the currencies of friendly countries, through cross rates with the dollar and the euro, it will be possible to regulate the cost of the euro and the dollar against the ruble,” he told a conference organized by a Russian business lobby group.

“We will discuss this with the government economic bloc. The central bank agreed.”

Siluanov, who gave no further details on how the scheme might work, said Russia could also make unspecified cuts in state spending to try to help maintain a cap on the ruble.

Source: CNN Brasil

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