off-the-wire

UPDATE 1-Russian finance ministry to sell 5.4 bln roubles of forex daily March 7-April 6

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds context) MOSCOW, March 3 (Reuters) - Russia's finance ministry said on Friday it would sell 5.4 billion roubles' ($71.62 million) worth of foreign currency a day between March 7 and April 6, a decrease in the volume of daily operations from the previous month. After a hiatus of several months, Russia resumed foreign currency interventions in January, selling yuan rather than what it terms "unfriendly" Western currencies, underscoring the growing importance of China's currency in Moscow's efforts to ensure economic stability amid Western sanctions.


The finance ministry said its regular FX sales on the market would total 119.8 billion roubles ($1.59 billion) over the coming month. A Reuters survey of analysts had predicted sales would total 180 billion roubles.


In the previous period, between Feb. 7 and March 6, the ministry had planned to sell 160.2 billion roubles worth of yuan to compensate for lower oil and gas revenues. Russia halted forex interventions last year as Western nations imposed sweeping sanctions against Moscow, including the freezing of about $300 billion in foreign exchange reserves, after it sent its armed forces into Ukraine. The government carries out forex interventions to cover shortfalls - or build up reserves in the case of a surplus - in earnings from Moscow's vital oil and gas exports. In Russia, where the dollar was king for years following the collapse of the Soviet Union in 1991, the yuan has become a major player. ($1 = 75.3500 roubles) (Reporting by Reuters; Editing by Kevin Liffey)

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