Cbank wants to differentiate currency regulation for Russians, foreigners

MOSCOW, Oct 30 (PRIME) -- The central bank supports differentiation of foreign currency regulation for Russian residents and non-residents, the regulator said on Monday in draft directions for the development of the financial market in 2024–2026.

“The Bank of Russia thinks it reasonable to differentiate approaches to definition of foreign currency regulation depending on the residency and currencies,” the central bank said.

“Demands for residents could be liberalized to the maximum level, while toughness of demands for non-residents should differ depending on their jurisdiction and the presence and scale of measures in regards to Russia,” the authority said.

The regulator also wants to define foreign currencies that could be used to buy stakes in banks or non-credit financial institutions, and supports softening of the administrative penalties for violation of the foreign currency regulation caused by Western sanctions.

Also, the central bank thinks that capital flow restrictions should be pin-point and time-limited instead of wide-scale and perpetual. The authorities should advance in the way of abolishing the restrictions. Stability and transparency of the regulatory framework, the lack capital and investment restrictions are still the basis of trust on the financial market, the authority said.

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