After the United States introduced a regular sanctions package against Russia, foreigners stopped buying currency in the Russian foreign exchange market, stated in the Central Bank, reports RBC.
In general, the regulator noted, the influence of prohibitions for the purchase of public debt was minimal, but the share of non-residents in the federal loan bond market (OFS) decreases. “From April 15 to the end of the month, foreign participants sold the currency in the domestic market by 63 billion rubles,” clarified in the Central Bank.
In mid-April, Washington introduced new sanctions against Russia. Part of the restrictions touched the Russian public debt. Since June 14, American companies will directly acquire Russian debt obligations issued by the Central Bank, the National Welfare Foundation or the Ministry of Finance. However, they will still be able to buy and sell Russian government bonds in the secondary market.
In May, it became known that the Russian Ministry of Finance displays the question of creating a mechanism that would remove from the circulation of OFZ with a floating coupon rate. Last year, Russia doubled its borrowing plan to protect the economy from a pandemic. At the auctions in the 2020-m, officials were sold with a floating coupon rate (it depended on the key rate of the Central Bank), and in the auction, Russian banks took part in the trading. Now, against the background of inflation risks and tightening the CB Credit Policy, the Ministry of Finance seeks to abandon expensive borrowing.