Page 78 - RusRPTFeb24

7.0 FX
RUSSIA -FX
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
4Q23
Jan 24
Currency (units per EUR) (eop)
88.8
86.4
87.6
90.5
56.2
56.5
78.9
79.2
90.4
82.8
97.3
Currency (units per USD) (eop)
73.8
73.4
73.6
81.8
53.1
58.9
74.0
73.6
83.5
77.0
89.7
Currency (units per EUR) (average)
89.4
86.4
87.9
99.4
73.0
86.8
64.3
78.5
88.5
77.1
97.5
Currency (units per USD) (average)
74.2
73.0
73.6
88.9
68.4
77.0
63.0
73.3
81.2
72.5
89.4
source: CBR
One third of currency loans in Russian banks’ portfolios is yuan-denominated Currency lending for corporate clients as of the end of the fourth quarter of 2023 was predominantly in currencies of friendly countries, the Bank of Russia reported earlier
The Russian government proposed extending a temporary decree issued last year by President Vladimir Putin requiring Russian exporters to convert 80% of their foreign currency earnings into rubles at the end of January.
If approved, instead of expiring in April, the decree would last until the end of this year. A radical measure designed to prop up the Russian currency amid wartime pressures, the compulsory currency sales have helped stabilize exchange rates in the run-up to this March’s presidential election. It seems the old adage is true: there’s nothing more permanent than a temporary solution.
The initial decree was signed by Putin in October during a currency collapse. It meant that every large Russian exporter was obliged to sell at least 80 percent of their foreign currency earnings and buy rubles. Representatives of the state financial monitoring service were assigned to all major exporters to ensure compliance with the new rules.
According to Deputy Prime Minister Andrei Belousov, one of the architects of the original measure, the requirement to sell foreign currency earnings “has demonstrated its effectiveness, helping to stabilize the currency market and reduce pressure on exchange rates.” The Kremlin also supports an extension,
78 RUSSIA Country Report February 2024 www.intellinews.com