Russian Rubble Edges Higher

The Russian currency moved up versus the US currency which dropped 1.5 percent versus the ruble. 

An official from the finance ministry told reporters that the central bank has began converting international currencies from the reserve fund into local notes.

The head of the long-term strategic planning department (Maxim Oreshkin) revealed they expect to finalize the exchange of 500 billion rubles or $8.01 billion. This is the same amount that the government intends to disburse within the end of this week. This will come from the bank’s reserve account in 2015.

Said conversion will not pass the FOREX market, at least at the outset, but the funds may be utilized by the department and deposited in Russian banking institutions through deposit auctions, the official stated.

Russia’s central bank informed media that it will consider the current FOREX market situation in converting reserve funds in the currency markets.

Central bank officials insist that this exchange will not have effects on inflationary processes since the institution will make use of other instruments to offset potential increases in ruble liquidity.