Foreigners, foreign banks buy 221 bln rbl foreign currency in Aug

MOSCOW, Sep 9 (PRIME) -- Foreigners and subsidiaries of foreign banks bought 221 billion rubles worth of foreign currency in Russia in August, the highest monthly amount since the beginning of 2019, the central bank said in a report on Monday.

“In the framework of shutting down of this (carry-trade) strategy, non-residents and subsidiaries of foreign banks bought foreign currency worth 221 billion rubles in the reporting period, which is the highest figure for 2019,” the regulator said.

“The combined currency swap position of non-residents and subsidiaries of foreign banks shrank to almost zero in August. At the same time, subsidiaries of foreign banks became net creditors in foreign currencies, while non-residents remain as net borrowers in foreign currencies. Reduction in attractiveness of carry-trade operations due to gradual reduction of ruble rates could help in creation of this trend in August, as well as weakening of the ruble in August.”

Introduction of new sanctions and volatility on the Russian currency market did not hurt stability of the foreign currency liquidity in the month, mainly due to a currency buffer that banks had accumulated, the central bank said.

(65.9981 rubles – U.S. $1)

End