Ruble rallies amid easing of capital controls

22 Apr, 2022 11:39
The Russian currency strengthens further against the euro and US dollar

The Russian ruble has strengthened against the euro and US dollar on Friday, trading data from the Moscow Exchange shows.

The rally comes despite the easing of capital controls this week, after the central bank allowed purchases of foreign currencies in the country.

As of 10:07 GMT the Russian currency had jumped roughly 2.7% compared to the end of the previous day’s trading to 78 rubles against the euro, and gained around 2.3% against the greenback to trade at 72.8 to the dollar. Since Monday, the Russian currency gained 5% against the euro and 8% against the dollar.

On Thursday, the central bank announced that all exporters will now have 60 business days instead of three to carry out the obligatory sale of foreign currency, credited to their accounts in authorized banks. Earlier the bank increased the period from three to 60 business days for non-resource, non-energy exports. The ruble is also helped by companies preparing to pay a record three trillion rubles (roughly $39 billion) in taxes this month, Reuters says.

Also on Thursday, the governor of the country’s central bank, Elvira Nabiullina, was approved for another five-year term by the lower house of the Federal Assembly, after President Putin had expressed confidence in her work.

The ruble has been strengthening against major currencies since early April, after Russia announced a new gas-for-rubles payment scheme. One month before that the ruble plunged to historic lows amid Western sanctions over the conflict in Ukraine, dropping to as low as 150 to the dollar, but it has since fully recouped its losses.

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