Rus­sia to boost FX flows to sup­port ru­ble: PM

The Pak Banker - - BUSINESS -

IRE­LAND: Rus­sia s Prime Min­is­ter Dmitry Medvedev said that the gov­ern­ment and cen­tral bank were pre­par­ing mea­sures to boost for­eign cur­rency sales in re­sponse to the weak­en­ing ru­ble. His com­ments sug­gest Rus­sia is again putting pres­sure on ma­jor ex­porters to help but­tress the ru­ble by selling more of their for­eign cur­rency, a tac­tic used last De­cem­ber when the gov­ern­ment or­dered state ex­porters to sell part of their for­eign cur­rency over an agreed time frame.

"Nat­u­rally we, I mean the gov­ern­ment, will help the cen­tral bank in the sense of ad­di­tional for­eign cur­rency in­flows," Medvedev said. "In the near fu­ture we will launch for­eign cur­rency sales by our largest ex­porters, which will af­fect the ru­ble s rates. So we, to­gether with the cen­tral bank, will un­der­take a def­i­nite col­lec­tion of agreed mea­sures." It was not clear what de­mands the gov­ern­ment has made of ex­porters this time nor how much dif­fer­ence they would make in prac­tice.

Ex­porters in­crease for­eign ex­change sales near the end of each month in any case be­cause they need rubles to pay monthly taxes. Medvedev said it was in­cor­rect to think the gov­ern­ment was in­creas­ing its con­trol over ex­porters for­eign cur­rency sales. "We never weak­ened this con­trol, and in fu­ture we don t in­tend to weaken it," he said, adding he had met with ex­porters and that the cen­tral bank also does so regularly to dis­cuss their for­eign ex­change sales.

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