Russia resumes buying foreign currency and gold as energy revenues boom

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Russia intends to buy a quantity of foreign currency and gold with the arrival of energy sector revenues above the target in the budget.

The Russian Ministry of Finance said that it will buy foreign currency worth 40.5 billion rubles ($433 million) during the period from August 7 to September 6, according to the budget mechanism aimed at protecting the economy from fluctuations in commodity prices and raw materials.

Since Russia stopped the purchase of foreign currencies in late January 2022, and the subsequent suspension of the purchase program after the start of the war in Ukraine in late February 2022, the Russian Ministry of Finance only sold foreign currencies during the current year as part of the mechanism modified financial.

With the bulk of Russia’s foreign exchange reserves frozen as a result of US and European sanctions, the Chinese Yuan has become the main currency of Russia’s reserves, and it can continue to be used for new purchases.

Russia gets about a third of budget revenues from the oil and natural gas sector.

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