Capital controls on Russian exporters could weaken the ruble in the long term, according to


Russia’s central bank has expressed concern that capital controls imposed on some exporters last month could lead to a long-term devaluation of the ruble. The bank warned that the measures could have the opposite effect of their original purpose, causing the ruble to be more volatile, according to a report published on Tuesday.

The capital controls, expected to last for six months, require 43 undisclosed export companies to deposit at least 80% of their foreign currency earnings in Russian banks. In addition, the companies must sell at least 90% of their proceeds on the domestic market within two weeks.

The central bank report also forecast that annual inflation will fall starting next spring. This forecast is based on the expected growth in Russian citizens’ savings and rising interest rates. The bank believes these factors could help lower inflation in the coming months.

Capital controls were introduced to stabilize the national currency and manage inflation. However, the central bank report showed that these measures could lead to a weaker and more volatile ruble in the long term.

The central bank report did not name the 43 export companies affected by capital controls. The companies are part of a broader economic strategy to manage Russia’s currency and inflation rate.

The report released on Tuesday delves into the potential long-term impact of these capital controls on the Russian economy and currency. While the measures are intended to stabilize the ruble and control inflation, the central bank report suggests they could have the opposite effect over time.

With capital controls set to remain in place for six months, their impact on the ruble and the wider Russian economy will continue to be closely watched. The central bank report highlights the potential risks associated with these capital controls and recommends that further analysis and monitoring is needed to assess their long-term effects.

Reuters contributed to this article.

This article was created and translated with the help of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.


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