The CBR suspended the purchase of foreign currency on the domestic market until the end of the year

The Central Bank suspends the purchase of foreign currency on the domestic foreign exchange market from November 28 to the end of the year. This is reported on Wednesday, November 27, on the website of the regulator.

The decision was made in order to reduce the volatility of financial markets.

"The Bank of Russia has decided not to purchase foreign currency on the domestic foreign exchange market from November 28, 2024 until the end of 2024 within the framework of mirroring regular operations of the Ministry of Finance of Russia, related to the implementation of the budget rule," - stated in the message.

At the same time, the Central Bank will continue to conduct operations in the domestic foreign exchange market for the sale of foreign currency related to the replenishment and use of the National Welfare Fund (NWF) in the amount of 8.4 billion rubles daily. They will take into account all operations with the fund's resources in 2023.

The decision on the resumption of operations in the domestic foreign exchange market will be made taking into account the situation in the financial markets, said representatives of the regulator. At the same time, the deferred purchases will be carried out during 2025.

These measures to stabilize the exchange rate commented "Izvestia" economist Andrei Barkhota, who recalled that similar measures were applied in the early 2000s and gave a quick effect.

"This can remove up to a third of the demand for the entire volume of foreign currency and reduce the rate of decline of the ruble to 30 kopecks per day to the dollar," - said the expert.

More than a hundred to one: the ruble exchange rate will consolidate around 105-107 per dollar by the end of the year

Why is the Russian stock market falling and what can support the national currency and company shares?

Earlier, November 22, in the Bank of Russia named the reasons for the growth of Russian reserves in gold by a record 33% since the beginning of the year. According to the regulator, the dynamics of the country's international reserves in recent years is primarily due to market and currency revaluation, as well as operations with the National Wealth Fund.