Bank of Russia begins pre-emptive sale of currency in domestic market

The Central Bank announced the beginning of foreign exchange interventions in the domestic market to support the ruble, which is getting cheaper after the drop of oil quotes.

According to the regulator's website, the Central Bank decided "on March 10, 2020, to start the pre-emptive sale of foreign currency in the domestic market as part of the implementation of the budget rule mechanism, taking into account the actual oil price." These operations will be carried out before the start of regular sales of foreign currency from the funds of the National Wealth Fund (NWF).

"This decision was made to increase the predictability of the actions of the monetary authorities and reduce the volatility of financial markets amid significant changes in the global oil market," the regulator stated.

The Central Bank assured that they are monitoring the situation in the financial market and are ready to use additional tools to maintain stability.

As of 06:00 Moscow time, the dollar was worth 74 rubles, the euro - 84 rubles. Prior to this, the euro reached 86 rubles, the dollar - up to 75 rubles.

The main reason for the collapse of the national currency was the fall in global oil prices due to the disruption of the OPEC+ deal.