Tag Archives: ruble

Russia to reveal prototype of its digital ruble in late 2021 – Central Bank

The Central Bank of Russia will launch a prototype of the digital ruble, a new form of national currency, by as early as the end of the current year, the regulator has confirmed.

We have just released an advisory report along with the concept of the digital ruble,” First Deputy Governor Olga Skorobogatova told a working group of the State Duma Committee on the Financial Market.

The senior official also said that the regulator will develop the prototype platform by the end of the year, and is going to observe the market to plan the subsequent stages of the project.
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The concept of a national digital currency was unveiled by the Russian Central Bank in late 2020. The new form of money is expected to coexist with cash and non-cash rubles. Unlike virtual currencies such as bitcoin, the digital ruble is projected to pose minimal risk since it will be issued by the state monetary regulator, and will be backed by traditional money.

The latest survey, carried out by the Skolkovo Center for Research in Financial Technologies and Digital Economy, showed that roughly half of those polled supported the idea of the digital ruble, while nearly 40% of respondents were against it.

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This post originally appeared on RT Business News

Russia looks to retire pricey ruble bonds to ensure economic stability

Russia’s Ministry of Finance is considering a buyback of floating-rate ruble bonds sold to boost emergency funds amid the Covid-19 pandemic, according to Deputy Finance Minister Timur Maksimov.

“The goal is to restore the right structure of the portfolio so that in the next crisis, government debt can be used to conduct an active economic policy again,” the government official said in an interview with Bloomberg.
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Returns from floating-rate bonds climb together with the central bank’s key rate. Floating-rate obligations reportedly account for nearly 35% of the ministry’s outstanding local bonds.

According to Maksimov, Russia is planning to cut back the level to 15% or 20% to shift away from the more expensive borrowing in the future.

Last year, the finance ministry had to double the borrowing plan to aid the national economy during the coronavirus pandemic which had been aggravated by plummeting oil prices and Washington’s plan to sanction ruble debt sales.
Also on rt.com Ruble shrugs off latest US sanctions targeting Russian financial market
The White House introduced the long-feared sanctions on Russia’s debt markets earlier this year, citing Moscow’s alleged meddling with US elections and hacking. The penalty comes into effect on June 14.

“If the market situation allows us to borrow more in advance, we may do so, but we’d work on making the borrowing flow more smoothly,” Maksimov said.

“Our weekly needs, taking into account the amount raised, are now at 45 to 50 billion rubles,” he added.

For more stories on economy & finance visit RT’s business section

Author: RT
This post originally appeared on RT Business News

Ruble shrugs off latest US sanctions targeting Russian financial market

The Russian currency is now stronger against the US dollar than it was before Washington slapped new sanctions on Moscow last month over the alleged interference in the 2020 US presidential election.

On April 15, US President Joe Biden signed a decree imposing another round of sanctions on Russia. In addition to sanctions on individuals and organizations, and the expulsion of Russian diplomats, the US government also targeted the Russian debt market, expanding previous measures. This time, the US decided to prohibit American financial institutions from participating in the primary market for ruble or non-ruble denominated government bonds issued after June 14.  
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Even before the measures were officially announced, concerns about the possible US move shook the Russian stock market and the ruble. Days before the sanctions were revealed, the Russian currency fell to 78 against the greenback – its lowest level in five months. This was partly due to the sell-off of Russian government bonds by foreign holders. Such a situation usually weakens the national currency, as investors then convert the ruble into other currencies.   

After the Biden administration confirmed the restrictions, the ruble sank again against its previous closing level. However, it did not fall lower than before, and even reversed some of its previous losses to trade at around 76 per dollar.

The Russian currency has strengthened since then. As of Monday afternoon, it stood at around 74 per US dollar – the same level it was in mid-March, before the latest sanctions were revealed.
Also on rt.com Most Russian exports have now kicked reliance on US dollar as payment currency
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Author: RT
This post originally appeared on RT Business News

Half of Russians voice support for public use of new digital ruble – poll

One in every two Russians, according to the latest poll, will welcome the use of the digital ruble – the new form of national currency that is currently under development by the country’s central bank.

At the same time, every fifth respondent indicated they are adamantly opposed to the new form of money, which is set to coexist with cash and non-cash rubles.A concept for the digital ruble was presented by the Bank of Russia earlier this week.

The regulator said that the prototype would be created by the end of the year. The digital ruble will be issued by the regulator, and will be backed by traditional money, thus eliminating risks.

“The data of the business school shows that 14% of respondents will definitely use the digital ruble,” the Skolkovo Centre for Research in Financial Technologies and Digital Economy, which carried out the survey, said.
Also on rt.com ‘Highest form of money’: Russia set to have first digital ruble prototype this year
According to the report, 36% of people polled said ‘rather yes,’ when responding to the question, whether they want to use the digital ruble.

“Only 38% of respondents spoke against the new form of national currency, with only 22% flatly refusing to use the digital ruble,” the survey revealed.

Strong demand for the new product mostly results from Russians’ commitment to innovations in the sphere of digital, according to Egor Krivosheya, head of research at the center.

“Various surveys show that our country is currently among the leading ones when it comes to the penetration of financial innovations, with the share of people who use advanced solutions, like mobile banking or contactless payments, totaling up to 80%,” he said.

The analyst added that some Russians still don’t want to use new payment tools, mostly by force of habit as well as due to lack of trust in technology and the banking system.

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‘Highest form of money’: Russia set to have first digital ruble prototype this year

The launch of the first prototype of the new form of Russia’s national currency, the digital ruble, could be just several months away, the head of the State Duma Committee on the Financial Market, Anatoly Aksakov, has told RT.

“The digital ruble is currently the highest form of money,” the official said in an interview to RT. He said that the central bank is set to publish the roadmap for development of the digital currency soon and its prototype should be ready by autumn.

“The tests of this form of money may start at the end of 2021 or at the beginning of 2022,” he went on, adding that the digital currency may be used for domestic transactions in two to three years.
Also on rt.com Russia to present new concept of national digital currency – Central Bank
The concept of the digital ruble was revealed by the Russian financial watchdog in October 2020. The new form of money will coexist with cash and non-cash rubles. Unlike cryptocurrencies such as bitcoin, the digital ruble has minimal risks as it will be issued by the central back and backed by traditional money, Russian officials say.

In February, the Central Bank chief Elvira Nabiullina announced that the regulator had held consultations with the banking community on the launch of the digital ruble. She promised that a more detailed concept would be presented by summer, and after that the plan would be open for further discussions with the public, market participants, and banks.
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