Russian Rouble Rises Ahead of Tax Season and Central Bank Meeting
The Russian rouble firmed against the dollar as the corporate tax payment season approaches. Key factors include a scheduled central bank meeting and adjustments to exchange rate formations. The rouble also showed gains against the euro and steadied against the Chinese yuan, while Brent crude oil prices remained cautious.
![Russian Rouble Rises Ahead of Tax Season and Central Bank Meeting](https://devdiscourse.blob.core.windows.net/aiimagegallery/30_05_2024_07_20_51_3843089.png)
The Russian rouble firmed against the dollar on Tuesday, supported by the impending corporate tax payments season when large exporting companies convert their foreign currency earnings. By 1030 GMT, the rouble was 0.3% higher at 87.55 against the dollar, with tax payments due on July 29.
Additionally, the rouble gained backing from a scheduled central bank meeting on Friday, where a 200 basis point interest rate hike to 18% is anticipated to control inflation and stabilize the economy. Main currency trading has shifted to the over-the-counter (OTC) market, becoming less transparent after sanctions were imposed on the Moscow Exchange and its clearing agent, the National Clearing Centre (NCC), on July 12.
On Monday, the central bank announced changes to its exchange rate formation mechanism, excluding extreme pricing values and considering trade volumes. If fewer than three banks provide data, the previous day's pricing will be used as a reference. Against the Chinese yuan, already the most traded foreign currency in Moscow, the rouble remained flat at 11.97, while it strengthened by 0.2% to 95.44 against the euro.
Meanwhile, Brent crude oil, a key export for Russia, steadied at $82.53 on Tuesday after falling for two sessions, amid expectations of ample supplies and low demand from investors.
(With inputs from agencies.)