Russia

RUB - Russian Ruble
Convertible: Yes - Transferable: Yes - Exchange rate regime: Floating
Russia

Types of transaction

FX SPOT FX FORWARD
Delivery date: T+1; T+2 Maximum maturity: 12 months
Liquidity: High Liquidity: High

Did you know?

Monetary policy

  • The Central Bank of the Russian Federation (CBR) implements monetary policy under the inflation targeting regime, its main aim being to ensure and protect the Ruble exchange rate sustainability by maintaining price stability.
  • Price setting method: At present, Russia employs a floating exchange rate mechanism, which means that the exchange rate is set by the market. However, it is assumed the CBR continues to monitor closely the exchange rate of RUB versus the most important global currencies and may intervene if deemed necessary.

Features and highlights

  • Since the fall of 2014, EURRUB has started an extremely volatile route, leading to a sharp depreciation of the RUB, bringing to a level 40% below where it was in September 2014.
  • The RUB exchange rate is very often driven by geopolitical events, whereby tensions between Russia and the West often lead to sharp declines in value of RUB. Next to geopolitics, RUB value is also driven by evolutions in the energy markets.
  • As many market makers hedge positions on Micex (Moscow Exchange), market liquidity is very dependent on their opening hours.

Regulations

Payments in RUB aren’t subject to any restrictions, but due to the more complex payment system, delays are possible.

 

Expert opinion

For short term fluctuations, keep a close eye on political tensions involving Russia, as they usually signal RUB weakness.

Payments in RUB to Russia

To process payments in RUB via the SWIFT network, we might need the below information:

  • BIC Code with correspondent account number or domestic BIK.
  • BIK - Domestic Bank Identification Code of the beneficiary bank, should consist of 9 digits (first 2 digits are ‘0’ and ‘4’ last 3 are the same as the last 3 digits in Correspondent account number)
  • INN - Registration Number in Tax authorities, should consist of 10 (for legal entities) or 12 digits (for individual entrepreneurs), not mandatory for individuals.
  • KIO - Registering number that can be use instead of INN for foreign entity holding an account in Russia
  • VO code - Currency Operation Code. It should consist of 5 digits and start with "VO"
  • Purpose of payment.
  • VAT - Value Added Tax. It should be mentioned if the payment includes or excludes VAT.

 

All the above elements will not be required, however there are a few options:

  • Option 1: BIK + BIC + [Beneficiary account number + INN/KIO + Beneficiary name + Address of the beneficiary + VO Code + Purpose of payment]
  • Option 2: Correspondent account with Central Bank of Russia + BIC + [Beneficiary account number + INN/KIO + Beneficiary name + Address of the beneficiary + VO Code + Purpose of payment]
  • Option 3: BIK + Correspondent account with Central Bank of Russia + Beneficiary bank name + Beneficiary bank city + [Beneficiary account number + INN/KIO + Beneficiary name + Address of the beneficiary + VO Code + Purpose of payment]
Public Holidays (subject to change)
New Year’s Day 1 Jan. Spring & Labour Day 1 May
Othodox Christmas Day 7 Jan. Victory Day 9 May
Defence of the Fatherland 23 Feb. Russia Day 12 Jun.
Women’s Day 8 Mar. Unity Day 4 Nov.