Data from Russia's central bank indicates surge in share of ruble transactions in country's foreign trade
Date
5/20/2024 4:21:46 AM
(MENAFN) Recent data from Russia's central bank indicates a notable surge in the share of ruble transactions in the country's foreign trade, particularly in its dealings with Europe. According to statistics, the employment of the Russian currency in settlements for exported goods and services to European nations soared to 58.5 percent in March, marking a substantial increase compared to previous periods.
This uptrend represents a significant annual rise of 10.8 percentage points and a month-on-month increase of 9.6 percentage points. The Federal Customs Service's data reveals that exports to Europe constituted 15.2 percent of Russia's total goods exports in the first quarter of the year, amounting to approximately USD15.4 billion.
Experts attribute this surge in ruble transactions to several factors, including the persistent Western sanctions regime and challenges in conducting settlements with European Union countries using euros and other currencies. Additionally, the adoption of a ruble-based payment mechanism for gas supplies bound for Europe is believed to have contributed to the shift towards ruble-denominated transactions.
Aleksandr Firanchuk, a senior researcher at the Russian Presidential Academy of National Economy and Public Administration (RANEPA), highlights the ongoing trend of increasing ruble usage in transactions with Europe, emphasizing Belarus's significance as a key trade partner within the region. Vasily Solodkov, director of the HSE Banking Institute, echoes this sentiment, underlining the impact of sanctions and the gas payment mechanism on the growing preference for ruble settlements.
The data underscores Russia's efforts to strengthen the role of its national currency in international trade, particularly in its economic interactions with European countries, amidst geopolitical challenges and shifting global dynamics.
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