MOSCOW: The rouble firmed towards 97 against the dollar on Wednesday as oil prices jumped to a more than two-week high, with the Russian currency trading in the 97-98 range it settled in after Moscow imposed capital controls last week to defend it.
By 1131 GMT, the rouble was 0.6% stronger against the dollar at 97.17 and had gained 0.9% to trade at 102.65 versus the euro. It had firmed 0.5% against the yuan to 13.26.
Since Monday, 43 groups of exporting firms were required to deposit no less than 80% of foreign currency earnings with Russian banks and then sell at least 90% of those proceeds on the domestic market within two weeks, the government said last week.
Russian rouble eases as new mandatory FX sales come into force
The rouble jumped about 3% in one session last week after President Vladimir Putin signed a decree mandating the reintroduction of capital controls similar to those imposed shortly after Russia invaded Ukraine in February 2022.
Moscow has said it will not publish the list of companies affected.
“Fears about the fate of the rouble forced the Kremlin to act more decisively in support of its stability,” said Finam Brokerage analyst Alexander Potavin. “A simple raising of the key rate was not enough to bring about exchange rate strengthening, as the Russian debt market is now cut off from external platforms due to sanctions and internal restrictions.”
The Bank of Russia hiked its key interest rate to 13% in September, following an emergency 350-basis-point hike in August as the rouble tumbled past the 100 threshold to the dollar.
“Therefore, the authorities had no other way than to introduce currency control,” Potavin said, expecting the rouble to settle in the 92-97 range to the dollar in the coming months.
The rouble should also start to see support from a month-end tax period that usually leads exporters to convert FX revenues into roubles to pay local liabilities.
Russia’s finance ministry will hold two OFZ treasury bond auctions on Wednesday.
Brent crude oil, a global benchmark for Russia’s main export, was up 2.6% at $92.24 a barrel, supporting Russian stock indexes.
The dollar-denominated RTS index was up 0.9% to 1,055.7 points. The rouble-based MOEX Russian index was 0.3% higher at 3,256.0 points, a near six-week high.
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