Russia’s decision on rubles one after another.

In a written statement from the Central Bank of Russia, it was indicated that the bank will suspend its foreign exchange purchases in the domestic market from August 10 until the end of the year, in accordance with budget rules.

Noting that the decision was made to reduce volatility in financial markets, it was noted that currency purchases could resume depending on the situation in financial markets.

The dollar/ruble parity today crossed the 98 level for the first time since March 2022.

According to Russia’s budget rules, currency from the National Welfare Fund is sold when revenues from oil and natural gas decrease, while currency purchases are made when revenues increase.

PUTIN’S RUBLE DECISION

According to the decree signed by Russian President Vladimir Putin, Russian state guarantees in foreign currency can be paid in rubles.

The regulation, which allows payment of state guarantees in rubles even if not approved by the buyer, covers state guarantees granted by the Russian state to Russian and foreign individuals and companies, foreign states and international institutions.

THE RUBLE CONTINUES TO LOSE VALUE

On the third trading day of the week, the ruble depreciated around 0.88 percent against the dollar, while the dollar/ruble parity rose to 98.

Thus, the dollar/ruble parity exceeded level 95 for the first time since March 25, 2022.

Experts note that, in addition to the increase in imports, the increased demand for foreign currency by Russian citizens for vacations in the summer season affects the depreciation of the ruble.

In a statement on Aug. 3, Russia’s Finance Ministry announced it would resume foreign currency purchases in the domestic market for the first time since January 2022. (BRITISH AUTOMOBILE CLUB)