: :inin Kyiv (EET)

Falling ruble threatens financial stability of Russia – Central Bank of Russia


The observed ruble devaluation creates preconditions for the emergence of risks to financial stability, the Central Bank of Russia says in a statement, released today.
It is reported by TASS.
“The dynamics of the ruble rate observed now, including its excessive volatility, creates a prerequisite to the emergence of risks to financial stability and formation of stable devaluation and inflation expectations,” the regulator point out.
The Bank of Russia on November 10, 2014, rejected the exchange rate band and moved to a free rate formation of the ruble, which, together with the fall in oil prices, significantly increased volatility of the ruble and led to the renewal of absolute minimums of the national currency against the dollar and the euro.
Despite the refusal of the exchange rate band, the Central Bank has repeatedly stressed that it is ready to enter the market with currency interventions in the event of threats to financial stability.
“According to the Bank of Russia, the current exchange rate significantly deviated from the fundamentally sound values,” the regulator’s statement reads. “If necessary, the Bank of Russia is ready to continue to make foreign exchange interventions without restrictions on the volume and pre-announcement”.

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