Russia considers proposal to buy up to $16 bln of yuan for state coffers in 2022



* Practical to buy up to $3-4 bn in yuan a month -paper

* Russian coffers bolstered by oil revenue surge

* Dollar, euro considered 'toxic' after Russian asset freeze

* Alternative reserve currencies are riskier, less liquid

* This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine

By Darya Korsunskaya and Andrey Ostroukh

MOSCOW, Sept 5 (Reuters) - Russia's government is considering a proposal which says Moscow could buy $3-4 billion worth of Chinese yuan a month to help stem the rouble's rise, but that it does not make sense for the country to accumulate illiquid currencies longer-term.

Flush with oil income, Russia is looking for ways to replenish reserves under a revived budget rule without buying the currencies of 'unfriendly' countries that froze around half its foreign reserves after it sent armed forces into Ukraine.

Currency buying under Russia's budget rule, which diverts excess oil revenues into a rainy-day wealth fund, was suspended in early 2022. A decision on reinstating the budget rule would need the approval of President Vladimir Putin.

Top officials from the government, central bank and major commercial banks held a meeting chaired by Prime Minister Mikhail Mishustin in Moscow on Aug. 30 to discuss the development of the Russian financial system.

But no decision on foreign currency buying was made at that meeting, four sources with knowledge of the matter told Reuters.

The finance ministry and the government did not reply to Reuters requests for comment.

The presentation, seen by Reuters and discussed at the meeting, according to the four sources, said it was feasible for Russia to buy the currencies of 'friendly' countries as a temporary measure to smooth out rouble volatility.

Russia's current account surplus - the difference in value between exports and imports - more than tripled year-on-year in the first seven months of 2022, to a record $166.6 billion, as oil revenues soared while Western sanctions hit imports.

However, Russia is worried that an overly strong rouble will dent revenues from selling commodities abroad for foreign currency, and has been considering buying the currencies of China, India and Turkey to hold in its National Wealth Fund (NWF) as part of its plan to reinstate the budget rule.

But compared to dollars and euros, which Russia has called 'toxic', the currencies of countries that have not imposed sanctions on Russia are less liquid and carry greater economic and political risks.

"Russia is not free to dispose of its reserves in the yuan. Spending them requires separate approval from China. At times of crisis, this approval might be particularly difficult to obtain. Other friendly currencies such as the

rupee are even less liquid," the presentation said.

The proposal suggested it would be practical for Russia to buy up to $16 billion worth of yuan by the end of the year, citing calculations made by the Centre for Macroeconomic Research at Sberbank SBER.MM , Russia's largest lender.

The presentations said that the size of free budget funds could reach $70 billion by year-end, sufficient to buy foreign currency as well as cover the budget deficit and service the national debt.

"From the economic point of view, buying a 'cheap' foreign currency now to resell it in the future is a logical financial strategy. But buying $70 billion by year-end looks extremely ambitious," said Dmitry Polevoy, head of investment at Locko Invest.
Writing by Andrey Ostroukh; Editing by Kevin Liffey and Alexander Smith

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。

所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。

本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示:您的資金存在風險。槓桿商品並不適合所有客戶。請詳細閱讀我們的風險聲明