The sanctions are now making market operations in USD and Euro impossible for Russian entities, and this requires a new definition of exchange rates.
The Bank of Russia has announced the official dollar and euro exchange rates for tomorrow, June 14. The dollar exchange rate It is fixed at 88.20 rubles/$. The euro exchange rate is 94.83 rubles/€. These are the first official values set by the Central Bank without stock exchange trading, which were canceled due to US blocking sanctions against the Moscow Stock Exchange. The last time the Central Bank set the exchange rates of the dollar and the euro based on the results of exchange trading on June 11, the 12th day: dollar – 89.02 rubles/$, euro – 95 .74 rubles/€.
On June 13, the Bank of Russia switched to a new rule for calculating the official exchange rate against the dollar and the euro. The Central Bank announced a new calculation method yesterday, June 12, after the US Treasury announced an increase in sanctions against the Moscow Stock Exchange. The National Clearing Center and the National Settlement Depository, members of the Russian Stock Exchange group, have also been subject to new restrictions and therefore can no longer operate in USD. Dfter the suspension of trading in dollars and euros on the Moscow Stock Exchange, transactions with these currencies will be carried out over-the-counter, through banks, the Central Bank later explained. Therefore, no further intervention by the stock exchange can take place.
The calculation of the rate based on data from digital off-exchange trading platforms was described by the Central Bank in a resolution of October 2022. According to this document, the official rate is set based on data on the weighted average value of the dollar, euro or yuan exchange rate obtained as a result of forward settlement transactions carried out before 3:30 p.m. , Moscow time, of the current day. The exchange rate value will be rounded to the nearest cent. The Central Bank has reported that the reference point for calculating the exchange rate between the euro and the dollar will be the Yuan exchange rate, which therefore becomes the reference yardstick on which the values of transactions in Western currency are calculated . However, currently the bulk of Russia’s foreign transactions are settled in Yuan.
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