Russia is considering purchases of China’s yuan, India’s rupee and Turkey’s lira for its wealth fund under a budget mechanism that uses excess income from energy sales.
Author of the article:
Article content
(Bloomberg) — Russia is considering purchases of China’s yuan, India’s rupee and Turkey’s lira for its wealth fund under a budget mechanism that uses excess income from energy sales.
Article content
The central bank disclosed a possible mix of currencies for the first time in a report on the policy outlook for the next three years on Friday. It said others can also be included, without giving more specifics.
“A considerable amount of investments” from the Wellbeing Fund will also go into domestic projects from 2022-2025 since they are necessary to help the economy adapt to changed circumstances as a result of sanctions, according to the report.
With euro and dollar purchases blocked by international sanctions over Russia’s war in Ukraine, Finance Minister Anton Siluanov has previously indicated that Russia may turn to other currencies to top up the Wellbeing Fund and possibly invest in the yuan as it expands trade with Asia.
Article content
Bank of Russia Governor Elvira Nabiullina has warned against using volatile currencies, while supporting a return to saving windfall income from oil and gas sales. The central bank had earlier urged the government to order state companies to convert their foreign-exchange holdings into the currencies of the nations that haven’t joined in sanctions against Russia.
The Finance Ministry is working on changes to the budget rule, which was suspended over the sanctions imposed after President Vladimir Putin ordered the invasion of Ukraine. It’s seeking to buy currencies from countries listed as “friendly” by Russia.
The wealth fund grew the most since July 2019 in May on soaring energy prices but fell to just under $200 billion last month. Yuan-ruble trading reached a record at the Moscow Exchange last month.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
