The Bank of Russia changed the method for calculating the official euro-to-ruble exchange rate

The Bank of Russia changed the method for calculating the official euro-to-ruble exchange rate

The euro exchange rate will now be calculated based on the U.S. dollar-to-ruble rate and the euro-to-dollar rate of the European Central Bank as of 15:30 Moscow time on the current business day.

The Central Bank explained the change by citing “low trading volumes in the ruble/euro currency pair on the domestic foreign exchange market.”

Yegor Susin, head of strategy development at Gazprombank’s center, explained in a comment to RBC that the switch to the new calculation method is needed to eliminate the influence of domestic factors on the official euro exchange rate, such as low liquidity.

“We have seen it, especially in recent days, when the official euro exchange rate was up three rubles, then down three rubles. The rate was fluctuating sharply because there were, indeed, very few interbank transactions on the basis of which the rate could be formed. Even some small one-off transaction could distort it significantly. Under the new calculation method, the Central Bank’s official exchange rate will depend only on the euro-dollar rate in the world: that is, if the euro falls, then obviously we will see that reflected here as well,” he said.

@meduzalive