Hold rubles in a clearing account at the Central Bank
Exchange ruble clearing balances for something else at the CB.
Buy a Russian GKO (tsy sec), which is an interest bearing account at the CB
b. Exchange rubles for $ at the official rate at the CB ”
When option 2b is utilized, ruble clearing balances are removed from the monetary system? And that leads to reduction in rubble-nominated net financial assets?
When process is in opposite direction, when a nation is running trade surpluses and constantly purchasing more USD reserves, local currency NFA’s are created and nation has to sell more tsy secs, that are commonly called nation’s debt, so that a nation runnig undervalued FX regime has to have constantly raising national debt even if the fiscal budged would otherwise be perfectly balanced?
Are USD reserve balance purchases done by the central bank or treasury anyways? Do they get counted as fiscal expenditure and get calculated as part of countrys fiscal deficit?