Tulin: CB has no algorithm to enter the market with currency purchases

MOSCOW, November 11. In CBR there is no algorithm to enter the market with currency purchases, has declared to journalists the first Deputy Chairman of Bank of Russia Dmitry Tulin.

“Every time we talk – we have no algorithms, no magic formulas and triggers that would have forced us to act in the foreign exchange market by buying or selling currency,” said Thulin.

Discrete auctions

Tulin also said that the urgent need for discrete auctions in the currency market.

Discrete auctions are now used by Moscow exchange in the stock market in cases of sharp fluctuations in the share price. During the auction, which usually lasts no more than 30 minutes, is the collection of applications regarding transactions, and then determines a single price at which they are held. This mechanism allows to smooth sharp fluctuations.

“It (the plan for the development of such a mechanism) remains, although we hope that acute needs will not arise. As soon as we decided to the worst times possible such a tool to create, we will work. Quietly, without haste”, said Tulin. He also noted that he did not think that such a tool is useful. “I don’t think is useful”, he replied to the question about the probability of such an auction at the end of the current year.