Russia cuts currency sales to $3.5 billion in September
MOSCOW (Reuters) - Russia's central bank reduced its currency market interventions by almost half last month, selling around $3.46 billion worth of foreign currency compared to $6.1 billion in August, data showed on Wednesday.
The central bank sold $3.18 billion in dollars and 200 million euros.
The rouble firmed by 1.5 percent versus a euro-dollar basket during September, as investors scaled back bets on a near-term cut in official Russian interest rates, and took account of the postponed tapering of U.S. monetary stimulus.
The stronger rouble reduces the automatic central bank interventions that occur when the rouble is near the boundaries of a trading corridor against the basket. The central bank shifted the corridor to 32.30-39.30 roubles to the basket, as of September 30.
On Wednesday the rouble eased 0.2 percent against the basket to 37.42.
The central bank has sold a net total of $17.2 billion in foreign currency since the start of the year. The bank's forex reserves have fallen 4.2 percent since the end of 2012 as a result, but remain among the world's highest at $515.9 billion.
The bank said in a statement on Tuesday that it would adjust its daily interventions in future according to the volume of the finance ministry's operations to manage sovereign wealth funds.
The Finance Ministry plans to buy foreign exchange worth 10 to 30 billion roubles to top up its Reserve Fund and the National Welfare Fund this year, which are together worth 5.4 trillion roubles ($170 billion) and held at the central bank.
Previously, the funds were managed in off-market operations.
(Reporting by Maya Dyakina and Vladimir Abramov, editing by Jason Bush and Patrick Graham)
- Tweet this
- Share this
- Digg this
- Govt considers ban on e-cigarettes, sale of single smokes
- India's fiscal deficit in H1 almost 83 pct of full-year target
- Islamic State fighters kill 220 Iraqis from tribe that opposed them
- Muslim men over 50 pray at Jerusalem's Aqsa mosque amid tight security
- Europe won't recognise vote in eastern Ukraine, Merkel tells Putin
Shares Hit Record
The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro. Full Article
China's shadow banking sector growing rapidly, third largest in world - FSB. Full Article