Russia eases forex requirements for exporters

Agence France-Presse

Posted at May 24 2022 08:33 AM

A woman leaves the Bank of Russia (Central Bank of Russian Federation) headquarters in Moscow, Russia, 29 April 2022. The Bank of Russia announced in 29 April 2022 to 'cut the key rate by by 300 basis points to 14.00 percent per annum.' According to the Bank of Russia's forecast, annual inflation will reach between 18.0 and 23.0 percent in 2022, slowing down to between 5.0 and 7.0 per cent in 2023. Yuri Kochetkov, EPA-EFE
A woman leaves the Bank of Russia (Central Bank of Russian Federation) headquarters in Moscow, Russia, 29 April 2022. The Bank of Russia announced in 29 April 2022 to "cut the key rate by by 300 basis points to 14.00 percent per annum." According to the Bank of Russia's forecast, annual inflation will reach between 18.0 and 23.0 percent in 2022, slowing down to between 5.0 and 7.0 per cent in 2023. Yuri Kochetkov, EPA-EFE

MOSCOW - Russia said domestic exporting companies would have to sell 50 percent of their income in foreign currency, a reduction from 80 percent earlier, after Moscow said the ruble stabilized. 

After the West slapped sanctions on Russia over the start of Moscow's military offensive in Ukraine in February, financial authorities introduced harsh capital controls.

They ordered exporting companies to sell 80 percent of their export earnings to buy rubles, among other measures.

Since then, the ruble has staged a spectacular rebound and strengthened around 30 percent against the dollar.

On Monday, the finance ministry, citing a government commission, said exporting companies would now be required to sell 50 percent of their income in foreign currency.

"This is due to the stabilization of the ruble exchange rate and the achievement of a sufficient level of foreign currency liquidity in the domestic foreign exchange market," the finance ministry said.

President Vladimir Putin has repeatedly claimed Russia's economy has managed to weather the barrage of unprecedented Western sanctions.

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