Bank of Russia extends easing of limits on open foreign currency positions

The Bank of Russia extends the earlier granted regulatory easing that provides for non-application of enforcement measures in relation to sanctioned banks if they fail to comply with the limits on open foreign currency positions (OFCP) for the period from 1 July through 31 December 2022. This decision has been made to maintain banks’ financial stability and help them adjust to the regulatory requirements they should comply with.

Nonetheless, banks should prepare and start implementing their plans for withdrawing from this easing. Concurrently, banks should not increase their OFCP relative to the positions as of 1 July 2022 in the case of non-compliance with the limits as of the said date.

The Bank of Russia will continue monitoring of foreign currency positions and, when making decisions on supervisory actions, will assess the reasonableness of exceeding the limits and the effectiveness of banks’ measures taken to reduce foreign exchange risk. Banks should fully comply with the OFCP limits by 1 January 2023.

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