Head of the Central Bank of Russia (CBR) Elvira Nabiullina confirmed to the press that plans to free-float RUB by 2015 and fully switch to inflation targeting are not going to be revised. She clarified that currency interventions will be maintained should there be financial stability risks from RUB exchange rate fluctuations. However, the policy of curbing the interventions will be maintained throughout 2014. In January, RUB followed the trend of the emerging currencies and weakened by about 8% to USD and EUR. At the same time, the CBR has been widening the benchmark exchange rate corridor daily in order to decrease the amount of required interventions. Deputy head of CBR Xenia Yudaeva previously said that RUB can be devalued by 25%-30% without noticeable hard to the economy. This week, EconMin Alexei Ulyukaev, an ex-central banker, argued that risks of slow economic growth are greater than the risks of accelerating inflation or stagflation. He urged the CBR to revise its plan to free-floating RUB by 2015 and allow interventions in case of high volatility or financial instability.
Most Popular Stories
- Koch Brothers Step up Anti-Obamacare Campaign
- FDIC Sues Big Banks Over Rate Manipulation
- Stocks Close Lower Ahead of Crimea Vote
- Vybz Kartel Convicted of Murder
- SoCalGas Reaches Record Spend on Diversity Suppliers
- U.S. Consumer Sentiment Falls in Early March
- FDIC Accuses Big Banks of Fraud, Conspiracy
- Jittery Investors Dumping Russian Stocks
- Is Malaysian Airlines Flight 370 in Andaman Sea?
- Ulta Shares Look Good on Strong Q4