Russian Central Bank Stops Buying Foreign Currency

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Russian Central Bank Headquarters - Sputnik International
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MOSCOW (Sputnik) - The Russian Central Bank announced in a statement on Thursday it would stop purchases of foreign currency on behalf of the Russian Finance Ministry until the end of September.

"The Bank of Russia has decided not to purchase foreign currency on the domestic market from August 23 until the end of September 2018 as part of an implementation of the budget rule mechanism. Such a decision has been taken to increase the predictability of actions of monetary authorities and reduce the volatility of financial markets," the bank's statement read.

READ MORE: Finance Min.: Russia to Rely on Domestic Investors if US Sanctions Russian Debt

According to the regulator, the decision on resuming purchases of foreign currency would be made based on the situation in financial markets in September.

"We remind you that we, as always, monitor the situation on the financial market and have enough tools to prevent threats to financial stability," the statement read.

Earlier in August Russian ruble sank to multi-month lows in early on Moscow Exchange after the US had announced a new string of sanctions against Moscow, which included, among other things, a ban on supplies of dual-purpose electronic devices and components to Russia.

US Secretary of State Rex Tillerson (R) watches as Russian Foreign Minister Sergei Lavrov reacts to a reporter's question after posing for photos in the Treaty Room of the State Department in Washington, DC on May 10, 2017. - Sputnik International
US Yet to Promulgate 1st Round of New Anti-Russian Sanctions Over Skripal Case
The restrictions were introduced by Washington over Moscow's alleged use of chemical weapons in the British city of Salisbury in early March to poison former Russian intelligence officer Sergei Skripal and his daughter Yulia. Russia denied involvement in the case, pointing out that the UK has never provided evidence nor cooperated with Moscow in investigating the incident.

Apart from these measures, in late July some US senators a new US sanctions bill, which specifically aims to block dollar-denominated transactions by Russian banks and US nationals' operations with the country's sovereign debt.

READ MORE: US Senator McCain Praises New Anti-Russia Sanctions

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