10.9.26 - Russia to Increase Gold Purchases Fivefold

10.9.26 - Russia to Increase Gold Purchases Fivefold

Gold last traded at $4,199 an ounce. Silver at $60.97 an ounce.

Russia to Increase Gold/FX Purchases Fivefold -ZeroHedge

GFN - MOSCOW - Russia's Finance Ministry will increase purchases of foreign currency and gold under the country's budget rule by more than fivefold beginning October 7, with operations totaling 279.42 billion rubles through November 6.

The ministry said the new program will amount to 12.7 billion rubles per day, up from 2.5 billion rubles per day during the September 7-October 6 period, when total purchases were 55.6 billion rubles.

The increase follows stronger oil-and-gas revenues. The Finance Ministry expects 289.46 billion rubles in additional federal oil-and-gas revenue in October. After a 10.04 billion-ruble adjustment for September revenues, the resulting purchase amount is 279.42 billion rubles.

The Bank of Russia will also increase net foreign-currency purchases tied to the mechanism. After accounting for separate operations, daily net purchases will rise to 12.12 billion rubles from 1.92 billion rubles during the previous period.

Russia resumed purchases under the budget rule in May after a two-month pause in March and April. Daily purchases restarted at 5.8 billion rubles, rose to 9.9 billion in June, fell to 5.4 billion in July, and increased to 6.5 billion in August before dropping to 2.5 billion in September.