Russia cuts currency sales to $3.5 billion in September

MOSCOW Wed Oct 2, 2013 1:24pm IST

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)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Economy

REUTERS SHOWCASE

Pharma Sector

Pharma Sector

In race for bigger margins, drug makers willing to lose the India "advantage".  Full Article 

Jan Dhan Yojna

Jan Dhan Yojna

Modi: Banking for all to end "financial untouchability".  Full Article 

Power Outage

Power Outage

India may face blackouts as coal shortage cuts power output  Full Article 

Moody's on Inflation

Moody's on Inflation

Persistent inflation hurting India's sovereign ratings - Moody's  Full Article 

Tracking Monsoon

Tracking Monsoon

Monsoon forecast to be better for crops next week  Full Article 

Carmichael Project

Carmichael Project

Adani buys Australia coal mine royalty rights from Linc for $145 million  Full Article 

GDP Preview

GDP Preview

Economy likely grew faster in June quarter: Reuters poll.  Full Article 

India-Japan Meet

India-Japan Meet

Modi eyes breakthrough nuclear pact on Japan trip   Full Article 

Rare Earth Output

Rare Earth Output

India to chip in with 5 pct of global rare earth output  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage