Central bank states Russian firms losing interest in foreign currency
(MENAFN) Russian companies have significantly reduced their demand for foreign currency, with corporate purchases in June reaching their lowest point in nearly a year, according to a report from the Bank of Russia. The central bank attributed this decline to the ruble’s continued strength.
The ruble has been steadily appreciating, gaining value against the US dollar for seven months in a row. This upward trend began in December 2024 and has persisted amid tighter monetary policies. On Thursday, the ruble briefly hit a two-year peak, trading below 75 per dollar, before retreating slightly to 77.89 as of Friday.
The central bank credited this resilience to its strict monetary measures, particularly the high key interest rate, which has made Russian assets more attractive to both businesses and individuals. Despite ongoing geopolitical tensions, currency market volatility has decreased.
In June, corporate clients bought foreign currency worth 1.6 trillion rubles (around $20.5 billion), about half the average monthly volume seen in 2024 and the lowest since July last year. This figure also represents a slight drop compared to May.
Household purchases of foreign currency have also declined. The central bank reported a 32% decrease in net purchases by individuals in June, totaling 77.9 billion rubles ($1 billion), down from 111 billion rubles in May. This reduction was partly attributed to seasonal trends, consistent with similar declines during the same months in previous years.
Since the start of the year, individuals have purchased 464 billion rubles ($5.95 billion) in foreign currency, nearly half the amount bought during the same period in 2024.
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