The Central Bank may resume purchases of foreign currency in the market, if you see a steady trend toward the strengthening of the ruble, said the head of the Central Bank Elvira Nabiullina on Friday, March 18, at a press conference after the meeting of the Board of Directors, where the regulator decided to leave the key rate without changes — 11%.
“We can start buying currency and to replenish reserves, regardless of course level, as we understand that the situation with dynamics of the rate is not temporary”, — said Nabiullina, adding that it would be wrong now to enter the market, and then, when volatility increased, away again.
The last time the regulator output on led to the weakening of the ruble. The Bank of Russia on 13 may 2015 daily bought on the domestic market of the currency in the volume of $100-200 million to replenish international reserves. 28 July operations had been suspended in connection with the increased volatility in the currency market. In July, the Central Bank bought $3.76 billion in June to $3,831 billion, in may $2,531 billion More than two months, the dollar rose by 8 rubles — to 58.8 cents.
“We have no hurry to replenish reserves, they are sufficient, so we will make a decision as to allow the situation to enter this market”, — said Nabiullina on Friday. While the Governor of the Bank of Russia does not believe that the market has formed a steady trend toward the strengthening of the ruble. “Those factors, which influence on the course now, may be soon quite volatile, so we do not yet see a sustainable trend,” Nabiullina explained.
In 2014, the Central Bank announced the comfortable level of reserves — $ 500 billion. Commenting on the suspension of purchases of foreign currency in reserves, the regulator has stressed that he does not refuse plans to increase its gold reserves to this level. This task can be realized within five to seven years, according to the Central Bank.
Russia’s international reserves as at 11 March 2016 $of 381.1 billion vs. $379 billion a week earlier.
International (gold and exchange) reserves of Russia are highly liquid foreign assets available to the Bank of Russia and the government. The reserves consist of monetary gold, special drawing rights (SDRs), reserve position in the IMF assets in foreign currency (other reserve assets).