BRICS member Russia is aggressively buying and selling currencies in the foreign exchange markets. The Central Bank of Russia initiated large amounts of ‘buy’ and ‘sell’ of currencies in the domestic market on Tuesday. The regulator is exchanging currencies in the Moscow Exchange section and sold tenders worth 0.8 billion Rubles. The first settlement was initiated on November 2, 2023, continuing over Monday and Tuesday of this week.
The volume of the currencies sold by the Central Bank of Russia also amounted to the same 0.8 billion Rubles $8.7 million on November 2. The Central Bank is using resources from the National Wealth Fund to operate in the currency market, reported Tass. The news outlet also reported that Russia is exchanging currencies using the Chinese Yuan and Ruble instruments.
It is reported that Russia is initiating ‘buy’ and ‘sell’ to keep the Ruble trading in large numbers in the currency market. The development helps the Ruble gain momentum against other local currencies, including that of BRICS and especially the US dollar.
BRICS: Apart From Russia, India Is Accused of Dumping US Dollars
BRICS member India is also accused of aggressively dumping US dollars in the foreign exchange market. The Reserve Bank of India (RBI) directed a state-run bank to sell large amounts of US dollars, reported Reuters.
The RBI directed the bank to offload the US dollars to keep the Rupee from falling to a new low. Read here to know how India sold large amounts of US dollars in the currency markets to safeguard the Rupee.
Apart from India, even China and Japan are looking to contain the rising US dollar. On the other hand, the BRICS alliance on the whole aims to dethrone the US dollar as the global reserve currency. Read here to know how many sectors in the US will be affected if BRICS completely stops using the dollar.