July 24, 2019
Latest News

Russia to restart foreign exchange reserves buying

 File image shows an exterior view of the Russian Central Bank headquarters in Moscow, Russia, Dec 14, 2018. Russia announced on Jan 11, 2019 it would resume foreign currency purchases via its central bank, spending 257 billion rubles ($3.8 billion) on foreign currency, from Jan 15 to Feb 6, or about $232 million a day. EPA-EFE (FILE) /YURI KOCHETKOV

File image shows an exterior view of the Russian Central Bank headquarters in Moscow, Russia, Dec 14, 2018. Russia announced on Jan 11, 2019 it would resume foreign currency purchases via its central bank, spending 257 billion rubles ($3.8 billion) on foreign currency, from Jan 15 to Feb 6, or about $232 million a day. EPA-EFE (FILE) /YURI KOCHETKOV

Moscow, Jan 11, (efe-epa).- Russia will resume foreign currency purchases on the open market to boost sovereign reserves after an eight-month break, a sign of the country's fading fears that major new sanctions will sink the ruble, according to a Dow Jones report supplied to Efe on Friday.

Russia's Finance Ministry will spend 257 billion rubles ($3.8 billion) on foreign currency from Jan 15 to Feb 6, or about $232 million a day, the ministry said. The announcement, which was expected, didn't cause major movement in the ruble-dollar exchange rate, with one U.S. dollar buying 67 rubles Friday.

The Russian government by law puts the money it earns from oil sales above $40 dollars a barrel into international reserves to reduce the country's vulnerability to oil market shocks. Last April, after the ruble was hit by damaging US sanctions and a slump in emerging markets, the country stopped buying foreign currency on the open market in an effort to stabilize the currency.

The resumption of dollar purchases, in theory, could put further pressure on the ruble. But Russia's central bank, which buys foreign currency for the finance ministry, said the resumed purchases will be gradual and modest in daily volumes to keep the ruble exchange rate stable.

Russia's currency lost nearly a quarter of its value against the dollar in 2018, fueling inflation and wiping out real income growth, but was stable the last few months of the year.

Russia's foreign exchange market re-entry, which was announced in Dec, shows its officials believe the worst impact of existing Western sanctions designed to punish Kremlin's meddling in elections and use of chemical weapons has faded. On Thursday, the US Treasury Department reaffirmed its intention to lift sanctions on Russia's largest aluminum producer Rusal.

The "sanctions risk has diminished," said Richard Segal, an emerging-market analyst at Manulife Asset Management. "The Russian economy doesn't have much dynamism, but it is stable and these days stability is a more valued commodity than growth with the risk of volatility."

Russia hopes building up reserves will provide it with a financial bulwark should relations with the West deteriorate again. To reduce its exposure to the dollar, on Thursday, the country's central bank revealed that it had brought its dollar holdings to a record low, moving $100 billion in 2018 into euros, yuan, and yen to safeguard against any future restrictions on Russia's use of the US financial system, the Dow Jones report added.

Only 22 percent of the central bank's $460 billion reserve stash was in dollars at the end of June, compared with 46 percent a year earlier, show the bank's latest figures. The overall level of reserves has recovered from as low as $356 billion in 2015 when the central bank was spending dollars to prop up the ruble in the face of sanctions and collapsing oil revenue.

News history
Facebook expected to settle SEC claims of inadequate disclosures over privacy

By Emily Glazer

Bank of Mexico's printing plant draws visitors interested in money

By Mariana Gonzalez

IMF reduces global growth forecast to 3.2 pct. due to political risks

Santiago, Jul 23 (efe-epa).- The trade war between the United States and China, the uncertainty created by Brexit and the tensions affecting the price of...

Possible New York Legislation Restrict Use of Cell Phone Location Data

New York, Jul 23 (efe-epa).- A bill to ban the sale of cellphone users' geo-location data to marketers was presented for debate to the New York City Council...

No compensation for Laos dam collapse victims one year later, report says

Bangkok, Jul 23 (efe-epa).- Thousands of survivors in a Laos dam collapse last year continue to live in temporary camps and have not received compensations...

Iran is Strait of Hormuz's 'guardian of security,' does not seek war: Rouhani

Tehran, Jul 23 (efe-epa).- The Iranian president said Tuesday that Iran was the guardian of security in the Strait of Hormuz and does not seek to increase...

Power blackout hits most of Venezuela

Caracas, Jul 22 (efe-epa).- A new power blackout left much of Venezuela without electricity on Monday starting at 4:40 pm, and the state-run Corpoelec,...

Iguacu, 1,300 km of hidden paradise among 6 hydroelectric plants

By Ana Paula Chain

British Airways suspends all flights to Cairo, citing security concerns

London, Jul 20 (efe-epa).- British Airways said Saturday that it has suspended all flights to Egypt's capital for seven days, citing unspecified security...

Kenya inaugurates Africa's largest wind farm

Loiyangalani, Kenya, Jul 19 (efe-epa).-Kenyan President Uhuru Kenyatta on Friday inaugurated Africa's largest wind farm, a 310-MW power station located in a...

Japan, South Korea trade fresh barbs over export curbs

Seoul, Jul 19 (efe-epa).- South Korea on Friday said Japan’s curbs on exports of high-tech materials critical for manufacturing of memory chips was in...

Trump nominates Eugene Scalia to replace scandal-ridden labor secretary

Washington DC, Jul 19 (efe-epa).- The president of the United States on Thursday nominated a right-wing corporate lawyer to be the new secretary of labor...

Microsoft's cloud business drives record sales

By Asa Fitch and Dan Gallagher

China reaffirms zero tolerance to corruption in New Silk Roads initiative

Beijing, Jul 18 (efe-epa).- China’s top anti-graft watchdog on Thursday reaffirmed its pledge of zero tolerance to corrupt practices in the country’s...

KLM diktat to cover up while breastfeeding in flights causes global outrage

The Hague, Netherlands, Jul 18 (efe-epa).- Dutch airline KLM is facing a storm of criticism for asking mothers to cover up while breastfeeding their babies...

Australian MasterChef star fined for underpaying his employees

Sydney, Australia, Jul 18 (efe-epa).- A high-profile chef who serves as a judge on the Australian version of the popular television show MasterChef and is...

Japan's trade surplus fell by 19 percent in June

Tokyo, Jul 18 (efe-epa).- Japan recorded a trade surplus of 589.5 billion yen ($5.5 billion) in June, a figure that is 19 percent lower than the one...

US-China trade war threatens economic growth in LatAm

Guayaquil, Ecuador, Jul 17 (efe-epa).- The already flagging economies of Latin America could be hurt by the ongoing trade war between the United States and...

Japan's curbs can damage global tech industry, South Korea says

Seoul, Jul 17 (efe-epa).- South Korea on Wednesday said Japan’s curbs on exports of high-tech materials critical for manufacturing of memory chips could...

Amazon faces EU antitrust probe for third-party retailer data use

Brussels, Jul 17 (efe-epa).- The European Commission on Wednesday opened a formal investigation into US tech giant Amazon to see whether its use of...

Paraguay taxi drivers again at war with Uber

Asuncion, Jul 16 (efe-epa).- Hundreds of taxi drivers suspended their service this Tuesday to again drive through the streets of Asuncion with a long...

Mercosur seeks to build on EU trade deal with new agreements

Santa Fe, Argentina, Jul 16 (efe-epa).- South American economic bloc Mercosur is seeking to build on a trade agreement reached with the European Union and...

US Treasury Secretary Steven Mnuchin

Washington DC, USA, Jul 16 (efe-epa).- Social media behemoth Facebook will not offer its Libra cryptocurrency services until it had been proven to meet the...

737 MAX woes hobble budget carrier Ryanair

By Oliver Griffin

I agree Welcome to news4europe.eu. We use cookies to improve your online experience. Find out more.