Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Russia cuts mandatory FX conversion level for exporters to 50%

Economy May 23, 2022 12:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A Russian rouble banknote is seen placed on U.S. dollar banknotes in this illustration taken March 1, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) - Russia is cutting the proportion of foreign currency revenues that exporters must convert into roubles to 50% from 80%, the finance ministry said on Monday, after the policy contributed to steep gains in the local currency.

Despite an economic crisis prompted by the conflict in Ukraine, the rouble has surged about 30% against the dollar this year, and on Monday hit a near seven-year high against the euro.

That has raised concerns the strong currency could hurt Russia's budget revenues from exports.

The finance ministry said a government commission had decided to lower the proportion of revenues that exporter-focused companies must convert into roubles.

"This is linked to the stabilisation of the rouble rate and reaching a sufficient level of foreign currency liquidity on the domestic currency market," the ministry said.

Russia introduced the mandatory foreign currency conversion in late February after Western sanctions - imposed in response to what Russia calls its "special military operation" in Ukraine - froze nearly half of the country's reserves and deprived the central bank of ability to intervene in the currency market.

Since then, the rouble has been boosted by demand from exporters, while there has been limited demand for dollars and euros from importers due to disrupted supply chains.

Retail demand for foreign currency has also been held back by restrictions on money withdrawals from bank accounts and on cross-border transactions.

Russia cuts mandatory FX conversion level for exporters to 50%
 

Related Articles

EU agrees rulebook for 'Wild West' crypto markets
EU agrees rulebook for 'Wild West' crypto markets By Reuters - Jul 01, 2022 3

By Huw Jones and Tom Wilson LONDON (Reuters) - The European Union on Thursday reached a provisional deal on the world's first set of comprehensive rules to regulate what one...

Dollar Edges Higher, Lifted by Safe Haven Demand
Dollar Edges Higher, Lifted by Safe Haven Demand By Investing.com - Jul 01, 2022 5

By Peter Nurse Investing.com - The U.S. dollar edged higher in early European trade Friday, trading close to the highs of the year on safe-haven demand as central banks take on...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email