The Finance Ministry again in September, will increase the volume of purchases of foreign currency on fiscal rule to 427 billion rubles But the operation will be carried out not on the open market
Photo: Simon Dawson / Bloomberg
In the period from 7 September to 4 October, the Finance Ministry will increase the purchase of foreign currency to 426.9 billion roubles, has informed a press-service of the Ministry. Thus, the volume of transactions will once again break the record since the start of fiscal rules in February 2017. The previous high was set in July and amounted to 383 billion rubles.
The amount of 427 billion rubles was formed because of receiving windfall profits from oil sales in the amount of 391,4 billion RUB (them refers to revenues from oil more than $40,8 per barrel), as well as with the income in the amount of 35.4 billion rubles, which the Ministry of Finance has received in excess of the forecast for August. The daily volume of purchases from September 7 to October 4 will be 21.3 billion RUB.
What will happen to the ruble after the refusal of the Central Bank to buy foreign currency
At the same time, as recalled by the Ministry of Finance, the purchase of foreign currency until the end of September will not be carried out on the domestic foreign exchange market. Such a decision at the end of August took the Central Bank, which acts as an agent of the Ministry of Finance in the mechanism of currency purchases. To reduce the volatility of the financial markets (a few days before the rouble weakened on the news about U.S. sanctions, and purchases of currency provided him with additional pressure), the Central Bank decided not to buy the currency on the open market until the end of September.
The budget rule does not say where the Ministry of Finance will buy the currency (stated only that “the Federal Treasury shall exercise the purchase (sale) of foreign currency”). Thus, it can be purchased on the domestic market, and directly from the Central Bank. RBC sent a request to the Central Bank.
“The Bank of Russia will make a decision on the resumption of purchases of foreign currency on the open market taking into account the actual situation in the financial markets, which will occur in September 2018,” said Wednesday the Ministry of Finance.
The Ministry considers that the design of fiscal rules does not change for the sake of reducing financial volatility and mitigate the effects of sharp changes in capital flows, Central Bank, however, can involve “a wide range” of tools, in particular the reduction of procurement. However, this “does not lead to change of volumes of formation of Fund of national well-being and does not preclude the implementation of the mechanism of “fiscal rules”, specifies the Ministry of Finance.