The Bank of Russia does not support the idea of using the ruble by spending foreign reserves, said the Chairman of the regulator Elvira Nabiullina at a meeting with bankers in boarding house “Bor”, organized by the Association “Russia”.
To spend them very quickly, after which the economy will return to the same situation, and the course will be even more volatile, said the Chairman of the Central Bank. She noted that the ruble stabilized when stabilized oil prices. The best way to achieve exchange rate stability is the diversification of the economy, less dependence on oil, said Nabiullina.
According to the head of the Central Bank, the regulator is not considering plans to change the exchange rate policy, including the replenishment of the budget. “The Finance Ministry is not considering such an option of replenishment of the budget, we are with them on contact. This effect artificially and would have a negative impact,” — said Nabiullina
Yesterday the Reuters Agency referring to sources in the Russian government said that the Central Bank together with the Cabinet of Ministers can coordinate their actions to solve the budget deficit because of falling oil prices due to the informal targeting of the ruble.
Reuters wrote that the government is not going to publicly set any targets for the ruble to solve budget problems. Source Agency stressed that the Central Bank does not need to return to the public targeting the exchange rate, it is sufficient to adjust the pace and volume of transactions on the foreign exchange market. “The point is not to devalue the ruble, no one is going to go back to targeting the exchange rate. This is solely about how to keep the rouble from excessive strengthening in the case of lower oil prices,” — said one of the officials.
The Ministry of Finance in response to this information stated that they do not discuss and does not admit “the possibility of targeted weakening of the ruble”. “On the contrary, currently we are working on measures to consolidate their budgets and reduce the Federal budget deficit. Such measures, from the point of view of the Finance Ministry, will have on the course of strengthening effect”, — stressed in the Department.
A spokesman for the Russian Prime Minister Natalya Timakova later said that the Cabinet does not consider the possibility of weakening of the ruble. She called such speculation “nonsense” and stressed that the currency exchange rate between the ruble and other currencies is determined by supply and demand. The government’s taxation policy is aimed at reducing the deficit, then this would strengthen the ruble, has concluded Timakova.
On Thursday, TASS with reference to the press service of the Central Bank reported that the Bank of Russia and MinFin are not considering the impact on the movement of the ruble neither in that nor in other party. “Artificial influence on the course ultimately nothing but harm the Russian economy to bear,” noted the Central Bank.