Russia eases forex sales rules for rouble contracts

Russian government eased foreign currency sales rule for exporters amid rouble concerns, Reuters reported on Saturday.

President Putin’s decree in October reinstated capital controls, impacting numerous industries. With the rouble facing pressure from capital outflows and limited foreign currency supply, controls were extended in April.

Some exporters were required to deposit 80 per cent of foreign earnings with Russian banks and sell 90 per cent of them domestically within two weeks. A recent decree, signed on May 30, allows exemptions if over half of the contract value is in roubles.

The central bank has expressed doubts about the controls’ effectiveness. Introduced as the rouble fell past 100 against the dollar, it now trades near 90.

The government argues controls reduce rouble depreciation risk, while the central bank cites high interest rates and robust export revenues as key supports.