Page 66 - RusRPTDec23

caused by a decrease in the dollar equivalent of liabilities due to the weakening of the domestic currency against the US dollar, as well as a reduction in the volume of the Russian sovereign debt securities at the disposal of non-residents, including as a result of their scheduled repayment.
7.0 FX
RUSSIA -FX
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
Nov 23
Currency (units per EUR) (eop)
90.6
88.8
86.4
88.6
90.5
56.2
56.5
78.9
79.2
90.4
98.1
Currency (units per USD) (eop)
75.5
73.8
73.4
74.2
81.8
53.1
58.9
74.0
73.6
83.5
90.0
Currency (units per EUR) (average)
89.6
89.4
86.4
88.5
99.4
73.0
87.0
64.3
78.5
88.5
98.0
Currency (units per USD) (average)
74.3
74.2
73.0
73.8
88.9
68.4
77.0
63.0
73.3
81.2
90.6
source: CBR
The EU's use of Russian assets to help Ukraine will harm the euro.
European Central Bank Vice President Luis de Guindos said: "Our position on using dividends and interest from frozen assets is clear. First, it must be a global solution, ideally involving all members of the G7. In addition, we need to be careful because it could lead to reputational damage.” This, he said, would have consequences for the euro as a safe-haven currency.
The ruble hit a three-month high of 92/$ in the first week of November, appreciating from its recent low of 102/$ in early October. This appears to reflect the re-imposition of capital controls, higher Urals crude oil prices and an improvement in Russia’s current account position. Last month the government ordered some exporters to effectively convert 90% of their FX earnings into rubles and the FT reported this week that foreign businesses will be restricted in their ability to sell their Russian assets in foreign currency. Capital controls will help to boost demand for rubles and support the currency in the coming months.
The central bank will resume foreign currency transactions on the local market connected with the replenishment and spending of money from the National Wealth Fund in January, the bank said in a statement on Monday. The central bank stopped foreign currency operations under the
66 RUSSIA Country Report December 2023 www.intellinews.com