The Central Bank commented on the plans to plug that hole in the budget with the help of weak ruble


The Bank of Russia and the Ministry of Finance does not consider influence on the movement of the ruble into one side or the other, according to TASS with reference to the statement of the press service of the Central Bank. The Central Bank also called harmful for the economy of any artificial influence on the ruble exchange rate.

“The Central Bank and the Finance Ministry does not consider influence on the movement of the ruble into one side or the other. Artificial influence on the course ultimately nothing but harm the Russian economy to bear,” said the Central Bank to the Agency TASS.

Yesterday the Reuters Agency referring to sources in the Russian government reported that the Bank of Russia jointly with the Cabinet of Ministers can coordinate in addressing the budget deficit through informal targeting of the ruble.

According to Agency sources, the government is not going to publicly set any targets for the ruble aimed at solving budgetary problems. One of the sources 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 these messages answered that they did 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”, — stated in the Ministry of Finance.

A spokesman for Prime Minister Dmitry Medvedev Natalya Timakova later said that the government is considering the weakening of the ruble. Prime Minister’s press Secretary has 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.

The Bank of Russia from November 10, 2014 abolished the existing exchange rate policy mechanism by cancelling the currency corridor for bi-currency basket and regular intervention. While the Central Bank has reserved the right on foreign exchange intervention in case of threats to financial stability. Thus the Central Bank released the ruble in “free floating”, allowing the exchange rate to be formed under the influence of market factors.

During today’s trading on the Moscow exchange, the Euro rose above $ 90 for the second rise of the European currency above 90 rubles. for two days. The dollar at the auction on Thursday also showed improvement. At the maximum of the American currency was worth 79,54 rubles per dollar.

The official rate of Euro established by Bank of Russia for February 11, is 88,22 rubles, the dollar — 79,07 RUB.