The Central Bank of Russia has stopped the purchase of foreign currency due to the collapse in oil prices

The Central Bank of the Russian Federation for 30 days stopped the purchase of foreign currency on the domestic market.

Центробанк России прекратил покупку иностранной валюты из-за обвала цен на нефть

This became known from the press service of the regulator.

“The Bank of Russia took a decision not to purchase foreign currency on the domestic market in the framework of the implementation of the budget rule for 30 days. This decision was made in order to improve the predictability of the actions of the monetary authorities and reduce volatility in the financial markets in the Wake of significant changes on the world oil market”, — stated in the message.

Also, the Central Bank of Russia noted that the restriction will apply to regular purchases of foreign currency, and postponed to 2018 purchase.

It is noted that the resumption of purchases of foreign currency will depend on the situation on financial markets over which the regulator will follow in March 2020.

Such measures at the Central Bank of the Russian Federation called “additional tools” that will “preserve financial stability” of the Russian Federation.

We will note, now in Russia operates a fiscal rule, according to which the Ministry of Finance of the Russian Federation every month buys additional income from the sale of oil higher than the set level. Bought currency is sent to the reserves. In this rule, the Central Bank of Russia is an agent of the Ministry of Finance, procurement on the open market.

We will remind, earlier it was reported that the collapse of the deal OPEC+ led to lower oil prices. While waiting for the results of the negotiations of the OPEC cost of oil initially began to grow.

Thus bringing down the price of oil Saudi Arabia, which continued production of oil and reduced the price of black gold, is trying to return Russia to negotiations OPEC+.

As of March 9 Brent crude oil has fallen by more than 30%. As a result, the Russian ruble collapsed. Saudi Arabia has started a price war in the oil market against Russia.