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, Source: Finance Ministry (Bloomberg) — Russia is likely to resume buying foreign currency for its reserves as soon as this month as rising oil earnings stabilize public finances despite US and European efforts to squeeze Kremlin income. With energy revenues now close to exceeding their target level, purchases are possible already in May, according to Bloomberg Economics, which estimates initial volumes could amount to the equivalent of around $200 million in yuan per month. The Chinese currency is the main asset Russia can still use to conduct transactions for its $154 billion wealth fund because of sanctions. An announcement from the Finance Ministry is due later this week. It’s already been reducing yuan sales, used for covering the budget deficit, during the last two months and cut April’s total to near half the figure for February. “It will be important for the market that the state is starting to accumulate reserves again instead of spending them,”said Natalia Milchakova, an analyst at Freedom Holding Corp. “This may even positively affect the ruble.” Since purchases were halted in late January 2022, followed by the program’s suspension after the invasion of Ukraine the following month, the Finance Ministry has only sold […]
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