Economy June 29, 2026 06:23 AM

Bank of Russia to Sharply Reduce Daily Forex Sales in Second Half of 2026

Planned cut trims central bank support for the rouble even as combined purchase operations rise in early July

By Caleb Monroe
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The central bank said on Monday it will cut its daily foreign currency sales to 0.58 billion roubles ($7.37 million) for the second half of 2026, down from 4.62 billion roubles in the first half. The move reduces direct market support for the rouble even as planned combined purchases with the finance ministry spike for the opening days of July.

Bank of Russia to Sharply Reduce Daily Forex Sales in Second Half of 2026
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Key Points

  • Central bank will reduce daily foreign currency sales to 0.58 billion roubles ($7.37 million) in the second half of 2026, down from 4.62 billion roubles in the first half - impacts currency market support.
  • Official foreign exchange operations represent up to one-tenth of Russia's forex market and include interventions on behalf of the finance ministry for the National Wealth Fund - affects fiscal reserve management.
  • Between July 1 and July 6, combined central bank and finance ministry foreign currency purchases will total 9.34 billion roubles per day, up from the current combined level of 5.28 billion - short-term increase in official buying.

The central bank announced on Monday a sizable reduction in its routine foreign exchange sales for the second half of 2026, setting a new daily ceiling of 0.58 billion roubles, equivalent to $7.37 million. That figure represents a sharp decline from the 4.62 billion roubles per day that the bank recorded for the first half of the year.

The change amounts to a significant drawdown in one element of official support for the rouble. The central bank's foreign exchange operations account for up to one-tenth of the country's entire forex market. Those activities encompass the bank's own transactions and separate interventions carried out on behalf of the finance ministry for the National Wealth Fund fiscal reserve.

Under the finance ministry's "budget rule," the ministry purchases foreign currency to replenish the National Wealth Fund when oil prices are elevated. Russian officials have indicated that the current period of higher oil prices may not persist, a consideration driving steps to reinforce the country's fiscal position.

For the first days of July, the central bank and the finance ministry plan a different operational profile. Between July 1 and July 6, foreign currency purchases conducted jointly will total 9.34 billion roubles per day, up from the current combined pace of 5.28 billion roubles per day. The finance ministry said it will disclose its new operational volume on July 3.

The rouble has shown market sensitivity to moves in oil prices. Last week the currency fell 8% against the U.S. dollar following a decline in global oil prices. Oil remains Russia's principal export commodity, and changes in its price feed directly into currency flows and fiscal calculations.

Market commentary cited in official communications notes that many analysts consider the rouble to be overvalued. Business representatives have urged authorities to allow the currency to weaken, arguing that a softer rouble would raise export receipts and increase revenues for the state budget.


Contextual note: The central bank's reduced daily sales in the second half of 2026 cut the direct level of forex market intervention provided by the institution, while planned early-July purchases increase combined official buying activity for a short window. Details on the finance ministry's longer-term operational volumes will follow its July 3 announcement.

Risks

  • The rouble recently fell 8% against the U.S. dollar after a drop in global oil prices - a continued oil price decline could place further downward pressure on the currency and affect exporters and importers.
  • Officials have warned the period of higher oil prices may not last, prompting fiscal consolidation efforts - uncertainty about future oil revenues poses risks to the National Wealth Fund replenishment strategy.
  • Many analysts view the rouble as overvalued while business representatives want authorities to allow weakening to support exporters and the state budget - policy choices about exchange-rate support carry trade-offs for fiscal receipts and corporate revenues.

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