Russian central bank to increase forex sales to US$113.53 million a day from July 1
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Under a complex scheme of foreign currency operations, the
central bank buys and sells forex to ensure supply on the domestic market and also on behalf of the finance ministry, which runs the budget reserve National Wealth Fund (NWF).
The netting of the central bank's own transactions and ones it conducts on behalf of the finance ministry provides a figure for overall forex interventions by the state, a major factor for the rouble market.
The announcement implied that net sales of foreign currency by the state will rise to 7.45 billion roubles from 7.36 billion roubles from July 1 until July 4, when the finance ministry will announce new parameters for NWF transactions.
The central bank cannot buy and sell dollars and euros because of Western sanctions imposed over
Russia's actions in Ukraine
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China's yuan, which is now the most traded foreign currency in Russia , has become the regulator's only instrument for forex interventions. The NWF is now held in yuan and gold.
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