Russian Rouble Strengthens Amid Rising Exporter Currency Sales

The Russian rouble strengthened against the dollar, driven by increased foreign currency sales from exporters preparing for corporate tax payments due on July 29. Despite sanctions on the Moscow Exchange and its clearing agent, the rouble saw gains against the dollar, yuan, and euro as trading shifted to the OTC market.

The Russian rouble saw a significant boost against the dollar on Wednesday, bolstered by heightened foreign currency sales from exporting companies. By 0800 GMT, the rouble had climbed 1.5% to 86.55 against the dollar.

Exporters began converting their foreign currency earnings into roubles in anticipation of corporate tax payments due on July 29. These sales are providing critical support to the Russian currency. Sanctions on the Moscow Exchange and its clearing agent, the National Clearing Centre (NCC), have resulted in varying prices and spreads as trading activities moved to the over-the-counter (OTC) market on June 14, complicating access to reliable pricing for the Russian currency.

In comparison to the yuan, which had become the most traded foreign currency in Moscow even before the latest sanctions, the rouble advanced by 0.6% to 11.83, based on OTC market analyses. The rouble also surged 1.7% against the euro, reaching 93.76. Meanwhile, Brent crude oil, a key benchmark for Russia's main export, was down 0.3%, trading at $81.37 a barrel.