regulator intervened in almost every trading for 6 years
The Russian Central Bank since June 24, 2014 has ceased to carry out foreign exchange intervention. Continuous suspension was the biggest since 2008, the newspaper “Izvestia». Read also: CBR changed mechanism of exchange rate policy
Bank of Russia 6 years to support the ruble to the Russian foreign exchange market on a daily basis, to the publication. The maximum interval between interventions regulator was three days.
«Thus, the controller actually let the ruble to float freely – ahead of schedule in 2015,” – says the newspaper. Interviewed experts indicate it, the regulator conducts a policy due to the reduction of international reserves and worsening geopolitical crisis in Ukraine.
The press service of the Bank of Russia newspaper confirmed that the regulator is not currently conducting interventions within the exchange rate band . CB representative explained that the intervention will resume “when sharp fluctuations with the threat of undermining financial stability.” “There is a gradual transition to a floating exchange rate, and therefore the intervention in the exchange rate band is not available, – stated in the CBA. – But they will take place at the boundaries of the corridor ».
A reference to the Central Bank during the intervention to support the ruble served the currency basket (consisting of 0.45 euros and 0.55 USD). When its value was close to the upper boundary of the so-called exchange rate band, the Central Bank sold the currency to the bottom – to buy. To smooth fluctuations regulator, according to the publication, to spend 100-200 million dollars a day. There were exceptions. On March 4, 2014 in connection with the sharp deterioration of the situation in Ukraine, the Central Bank sold on the market a record 11.3 billion currency.
the central bank this year is rapidly losing international reserves, which it mainly aims at maintaining the ruble. Their volume decreased from 510.5 billion dollars (as of January 3, 2014) to 464.2 billion dollars. Foreign exchange reserves fell by about $ 46 billion. This represents 9% of their size.
Head of Research Bank BKF Maxim Osadchiy noted that the ruble was on the 6th place among all national currencies in the rate of devaluation against the dollar since the beginning of the year. He yielded only currency of Ghana, Ukraine, Argentina, Kazakhstan and Madagascar. “The reason of increased devaluation – the acceleration of the net outflow of capital from Russia. At the beginning of the year – because of the banking crisis, and then – because of the conflict with Ukraine and sanctions “, – said Osadchiy. He noted that the devaluation makes a significant contribution to inflation. It is in August reached 7.6% in annual terms.
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