The department announced that from October 7 to November 6, it will allocate 71.8 billion rubles for the purchase of yuan and gold under the budget rule, a reduction of 2.6 times compared to the 172.9 billion rubles allocated the previous month.
To offset the decrease in purchases by the Ministry of Finance, the Central Bank will increase its currency sales in the market to boost supply and support the ruble, according to Artem Deev, head of the analytical department at AMarkets. The Ministry of Finance anticipates that oil and gas revenues will fall short of expectations in October.
Increased currency sales by the Central Bank could lead to a strengthening of the ruble against the dollar and other currencies. A stronger ruble may help mitigate import inflation, as imported goods become cheaper, the expert notes.
“The reduction in currency purchases by the Ministry of Finance may suggest that the government is prepared for a more proactive budget policy amid instability in the currency market,” the analyst adds.