© Reuters. FILE PHOTO: A view exhibits the newly designed Russian 1000-rouble banknote throughout a presentation in Moscow, Russia October 16, 2023. REUTERS/Maxim Shemetov
MOSCOW (Reuters) -The Russian authorities on Tuesday proposed extending capital controls that require exporters to transform overseas foreign money revenues into roubles till the tip of the yr, a transfer that ought to buttress the Russian foreign money.
The measures, ordered by President Vladimir Putin in an October decree, have been efficient, the federal government mentioned on the Telegram messaging app. They’re at the moment set to run out in April.
The controls, which had been opposed by the central financial institution, had been introduced in because the rouble tumbled previous the 100 mark towards the greenback. It was buying and selling close to 88 to the greenback on Tuesday.
“Taking into consideration the present ends in accordance with the president’s decree, the measures can be proposed for extension till the tip of 2024,” the federal government mentioned.
The decree requires dozens of undisclosed exporting companies to deposit a minimum of 80% of overseas foreign money earned with Russian banks, after which promote at the very least 90% of these proceeds on the home market inside two weeks.
“It may be famous at present that, in response to the accessible knowledge, exporters have typically noticed the presidential decree’s necessities,” mentioned First Deputy Prime Minister Andrei Belousov.
“This has made it potential to cowl the deficit of overseas foreign money wanted by importers to keep up provides of merchandise to our nation.”
The central financial institution had lengthy warned that foreign money controls had been inefficient and would finally be circumvented, however publicly endorsed Putin’s decree in October. Governor Elvira Nabiullina nonetheless voiced doubts.
The central financial institution didn’t instantly reply to a request for touch upon the federal government’s proposal.