The Bank of Russia has changed the method for calculating the official euro/ruble exchange rate

The Bank of Russia has introduced a new procedure for calculating the official euro-ruble exchange rate, according to the regulator’s website.

Now the euro exchange rate will be calculated based on the US dollar/ruble exchange rate and the euro/dollar exchange rate of the European Central Bank as of 15:30 Moscow time on the current business day.

The Central Bank explained this change by “low turnover in the ruble/euro currency pair in the domestic foreign exchange market.”

The head of the Gazprombank strategy development center, Egor Susin, explained in a comment to RBC that the transition to a new calculation method is necessary to eliminate the influence of internal factors, such as low liquidity, on the official euro exchange rate.

“We have seen, especially in recent days, when the official euro exchange rate is either plus 3 rubles or minus 3 rubles. The rate fluctuated greatly because, indeed, there are very few interbank transactions on the basis of which the rate can be formed. Even some small single operation could greatly distort it. According to the new method of calculation, the official exchange rate of the Central Bank will depend only on the euro-dollar exchange rate in the world: that is, if the euro falls, then, of course, this story will be reflected in our country,” he said.

• In June 2024, the Bank of Russia switched to a new methodology for calculating the official dollar and euro exchange rates to the ruble. This happened after the United States imposed sanctions against the Moscow Exchange, the National Clearing Center and the National Settlement Depository. In this regard, the Central Bank began to set dollar and euro exchange rates to the ruble based on bank reporting data on transactions in the over-the-counter foreign exchange market as of 15:30 Moscow time on the current business day.