China News Agency, Moscow, October 3 (Reporter Tian Bing) The Central Bank of Russia announced on the 3rd that it will develop a new foreign exchange rate determination mechanism. When determining the official exchange rate, it will introduce relevant bank statements and trading platform data other than exchanges.
In order to more accurately reflect market conditions, the Bank of Russia has developed a supplementary procedure for determining the official exchange rate between foreign currencies and the ruble, according to an announcement published on the official website of the Central Bank of Russia on the 3rd.
To determine the official exchange rate, other alternative data sources will be introduced: bank statements and data from trading platforms other than exchanges.
The announcement stated that the Central Bank of Russia has formulated a draft of instructions on the corresponding changes to the official foreign exchange rate calculation and publication procedures, and will be publicized on the portal of draft federal laws and regulations for 7 days from now on.
At present, the exchange rate of the dollar, the euro and other foreign currencies is determined based on the weighted average exchange rate data with the ruble, Russia's "Belt Network" reported.
It is calculated by the Moscow Exchange's transactions on each trading day from 10:00 to 15:30.
In the future, even if the regulator does not have Moscow Exchange data, the Bank of Russia will be able to set the value of foreign currencies based on the weighted average exchange rate of credit institutions in the foreign exchange market as part of the relevant reports provided to the Bank of Russia.
If there is no relevant data on exchanges or banks, the Bank of Russia will use data from other trading platforms other than exchanges.
Interfax news agency reported that the Russian central bank’s move was in response to the risk that the currency of “unfriendly countries” could stop trading on the Moscow exchange at any time in the event of sanctions.
The market is worried that with the further intensification of sanctions against Russia by the United States and the West, the Russian National Clearing and Depository Center and the National Clearing Center (part of the Moscow Exchange Group) may be sanctioned.
The European Union imposed sanctions on Russia's National Clearing and Depository Center in early June.
Since the outbreak of the Russia-Ukraine conflict, the West has imposed multiple rounds of large-scale sanctions on Russia, including in the financial sector.
Russian Prime Minister Mishustin said during the Moscow Financial Forum on September 8 that the West launched unprecedented sanctions against Russia, but they did not achieve the purpose of undermining Russia's financial stability.
(Finish)