In all likelihood, Russia will resume currency purchases in May to replenish its reserves as rising oil revenues stabilize its finances, despite efforts by the United States and Europe to reduce Russian treasury replenishment. Tuesday, May 2, according to Bloomberg. According to the agency, Russian energy export revenues are currently close to exceeding the target level.
The purchase volume will be around 200 million yuan
According to Bloomberg Economics, initial purchases of foreign currency could amount to the equivalent of $200 million in yuan per month. The statement of the Ministry of Finance of the Russian Federation in this regard is already expected this week, it is noted further. “The volume of foreign exchange purchases will initially be small, but extremely symbolic, as they will demonstrate that the country is increasing them instead of absorbing its reserves,” Bloomberg said quoting Russian economist Alexander Isakov.
The resumption of foreign currency purchases will underscore the Russian Federation’s ability to maintain the flow of petrodollars in the face of sanctions and the “ceiling price” set by G7 countries and the European Union for buyers of Russian oil, notes- your. further away. Despite the strained state of public finances in Russia due to military spending and a still extremely high deficit, the Russian budget is stabilizing, the agency said.
“Ceiling” of Russian oil prices
The price cap for Russian oil of $60 a barrel, introduced by the EU, G7 countries and Australia in the context of Russia’s war against Ukraine, came into force on December 5. Since February 5, there is also a price limit for petroleum products from Russia – at the level of 45 and 100 dollars per barrel, depending on the type of raw material. Russian oil has averaged around $74/bbl since the cap was introduced, according to Bloomberg, around a quarter above the $60/bbl threshold.