Russia imposes mandatory foreign currency sales for exporters

A statement from the Russian government indicated that Putin has signed a decree targeting certain Russian export companies. Accordingly, Russia's 43 largest export companies are now required to sell their foreign currency earnings on the domestic market, and the foreign currency sales process for these companies will be monitored by certain official institutions.

In the statement, First Deputy Prime Minister of Russia Andrey Belousov stated, "The main purpose of these measures is to increase the transparency and predictability of the foreign exchange market and to reduce opportunities for currency speculation."

The mandatory foreign currency sales requirement imposed on companies in Russia following the war in Ukraine had been lifted after a period of time. However, it was brought back onto the agenda after the ruble lost more than 25 percent of its value against the dollar this year.

Russian President Vladimir Putin, in a statement on September 12, pointed out that export companies were returning their foreign currency earnings to Russia in a "limited" manner, saying, "They must understand the fact that it is safer to work here. I am sure that those I am addressing understand me."

News Source: 12punto