Details from Russia’s financial market as of Thursday April 6, indicate that the Ruble is strengthening and the central bank has noted that more foreign currency will flow into the country.
According to auctions of the Moscow Exchange today, April 6, the dollar and euro exchange rates reached 81 rubles / $ and 88 rubles / € – for the first time since April 2022.
Russian Finance Minister Anton Siluanov admitted on Thursday that the ruble would begin to strengthen against the backdrop of an increase in energy prices.
“We are not setting any boundaries now. The Central Bank, as a regulator in the money market, does not impose any restrictions. Therefore, prices for our energy carriers have now increased, and this is a signal that more foreign currency will flow into the country, and accordingly this will lead to the fact that the ruble exchange rate will tend to strengthen,” said Siluanov.
Although higher oil prices usually boost the ruble, tighter foreign exchange supplies are hurting the Russian currency.
Month-end tax payments that usually see exporters convert foreign exchange revenues into rubles were due last week.
Analysts say capital outflows from Western investors selling assets, wealthy Russians converting rubles and periodic Eurobond payments that require swift conversion into hard currency, are partially behind the ruble weakness.
Russian stock indexes were higher on Thursday.