Economy Russia’s Central Bank intervenes in FX market

Russia’s Central Bank intervenes in FX market

Russia Central Bank
Russia Central Bank

The Bank of Russia continued intervening in the currency market and bought another $200 million on Wednesday, the bank said on Friday.

The central bank–which reports its currency market activities with a two-day lag–resumed interventions last week in order to replenish the country’s depleted reserves. Analysts say the central bank buying foreign currencies is aimed at limiting the ruble’s recovery.

The central bank said last week it will buy between $100 million and $200 million a day and the purchases shouldn’t affect the ruble rate. Earlier this week, a central bank top official said the amount of daily interventions could change, which the market took as a hint that purchases will increase.

Since purchases began on May 13, the central bank has bought $1.18 billion. Russia’s international reserves rose $3.8 billion to $362.3 billion in the week to May 15. A year ago reserves stood at $466.8 billion.

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