The Russian Finance Ministry plans to increase foreign exchange purchases in order to increase its reserves in the new year, in a move aimed at reducing the Russian ruble's volatility during the presidential election year. After two years of stagnation and depletion of reserves in light of the sharp drop in oil prices, the Ministry of Finance decided to fill the shortage of foreign exchange.
Russia's finance minister said it would be possible to spend nearly 2 trillion rubles, equivalent to 35 billion dollars on foreign exchange during the next year if the prices of Russian crude oil “Urals” between 54-55 dollars a barrel, it was traded recently at levels of 64 dollars Per barrel.
The minister added that the treasury will increase foreign currency purchases in 2018 to reach 70% of the revenues of the non-oil and gas budget from about 30-40% at present, and that this increase will reduce the fluctuations of the ruble in the market during 2018.
Russian President Vladimir Putin, who has been seeking re-election for new six years, has stressed the importance of the ruble's stability more than its current exchange rate.
