Russian Central Bank to change the process of calculating USD/RUB rate

The Central Bank of Russia has announced on Monday that it is changing the procedure of calculating and publishing the official foreign exchange rates. The change comes as the value of the ruble against the US dollar has plummeted over the past few weeks.

The Russian monetary regulator has addressed the elevated volatility in the foreign exchange market by increasing the representativeness of the US dollar exchange rate against the ruble. The Russian central bank will expand the time frame for calculating the official USD/RUB exchange rate and will simplify the procedure for setting the official EUR/RUB exchange rate.

The draft for the instruction has been forwarded to the Ministry of Justice for registration, the bank stated. The document is set to come into force from the date of official publication

According to the official document, the Bank of Russia will set the dollar exchange rate based on the Moscow Exchange data on the weighted average USD/RUB exchange rate for transactions concluded from 10:00 to 16:30 Moscow time. The calculation period previously was 10:00-11:30 MSK.

The central bank said that the extension of the time range for the calculation of the rates will allow it to process a larger number of transactions during the day.

The bank added:

Moreover, the official EUR/RUB exchange rate will be set in the same manner as the official exchange rates of other foreign currencies against the ruble. This will simplify the procedure for setting and publishing official exchange rates.

Sanctions on Russia

Russia’s central bank is trying to defend the country’s economy from the massive sanctions imposed from the Western counties in response to Moscow’s invasion in Ukraine.

The value of the ruble against the US dollar has fallen over 30% in a week. Several banks were banned from using the SWIFT global payments messaging system. To save the value of its currency and maintain its foreign currencies reserves, it has even suspended the sale of foreign currencies withing the country.

The Moscow Exchange has been closed for two weeks already and it looks like it will remain closed for this week, as well.

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