ALEXEI VEDEV “REPATRICATION OF FOREIGN CURRENCY EARNINGS WILL TELL ON THE RUBLE EXCHANGE RATE BUT NOT AT ONCE”

On October 16, the presidential executive order on mandatory repatriation and sale of foreign currency earnings by exporters came into force. However, there were no significant changes on the market, the ruble was moderately weakening against major currencies. Almost the whole day the dollar on the Moscow Exchange was near the mark Rb97, euro - Rb102.4. Thus, the revenge on the part of the Russian currency did not take place, although there was a reason for it.

"It was hard to expect any significant changes in one day: the executive order says that exporters must sell at least 90% of the proceeds received on their accounts on the domestic market within two weeks," Alexei Vedev said. Accordingly, companies have time to maneuver. No doubt, the measure will affect the exchange rate, but not immediately. Secondly, there may be seasonal fluctuations, when the sale of earnings will be overlapped with tax payments, which are usually made by businesses at the beginning of each new quarter.