Bank of Russia comments on FX market operations related to investment of NWF funds in eligible ruble-denominated financial assets

Based on to the results of each half-year period, the Bank of Russia will determine the amount of sales (purchases) of foreign currency in the size of the net NWF funds investment in rubles during this period (gross investment minus gross return on earlier investment in eligible financial assets). Mirroring transactions will be performed in the FX Market of the Moscow Exchange as the FX swap CNYRUB_TOM evenly during the next half-year after the settlement period with a one-month deferral. Taking into account the liquidity of the domestic foreign exchange market, the Bank of Russia sets the limit on the maximum aggregate amount of such operations for the first half of the year at ₽300 billion. If the actual NWF investment in the reporting period exceeds the specified value, the excess amount will be carried forward for mirroring in subsequent periods.

Over the period from 1 January to 30 June 2023, the net investment of NWF funds in eligible ruble-denominated financial assets was ₽288.4 billion. Hence, from 1 August 2023 to 31 January 2024, the daily volume of these operations of the Bank of Russia will total ₽2.3 billion.

The volume of these transactions for the period from 1 February to 31 July 2024 will be determined and published by the Bank of Russia in January 2024 based on the results of NWF funds investment in eligible financial assets in 2023 H2.

The actual daily net volume of the Bank of Russia's operations in the FX market and whether they should be executed to buy or sell foreign currency will be determined as a balance of two values: the volume of regular fiscal rule-based operations and the volume determined by the size of NWF investments.

In order to minimise the impact of these operations on the exchange rate movements, the Bank of Russia will buy or sell foreign currency in the market evenly during each trading day.