Additional major easing around currency restrictions not expected, but some adjustments are possible. This was announced on Monday, April 17, by Elvira Nabiullina, Chairman of the Central Bank of the Russian Federation, at a meeting with the New People group in the State Duma. TASS.
“We have achieved the relaxation, no further major measures are expected in exchange rate restrictions here.
Maybe some adjustments, some fixes. But overall we believe that this system has more or less stabilized.”
In early March last year, on the backdrop of Western sanctions and financial market volatility, the Central Bank of Russia limited the circulation of cash in the country. The regulator has limited individuals’ cash intake and issuance from existing deposits, these measures are effective until September 9, 2023. In addition, the Central Bank extended the restrictions on transfer of funds to foreign banks for individuals until September 30.
Also, last March, President Putin, by decree, banned the export of more than $10,000 in cash from the country.
About inflation
At Monday’s event, Nabiullina also noted that the Central Bank has not set itself the task of achieving the 4% inflation target at any cost.
“We are not currently trying to steer inflation towards the 4% target at all costs,” he says.
According to him, the regulator expects inflation to be 5% – 7% this year and 4% from 2024. Earlier, he noted that annual inflation in Russia fell below 4% in March and could drop further in April.
About Mir cards
Nabiullina also said that the Central Bank, together with the Russian government, is trying to create conditions for foreigners who want to issue cards of the Russian payment system Mir.
“An important issue here is the remote identification of a person, as a stranger must identify himself in order to receive a Mir card.
We are trying to agree on the possibility and so that it can be done remotely it would be possible to get a virtual card, come here and get it in a tangible setting, for example at the airport. Such a project is underway, and the legislation should be amended for remote identification. In our opinion, this is quite possible,” he says.
According to his estimates, necessary changes in legislation could be made as early as the spring semester. The head of the regulator believes that “remote identification is useful and necessary for many things,” despite the resistance on this issue.
Nabiullina added that Bank of Russia continues to develop the infrastructure for the acceptance of Mir cards abroad in countries that are popular with Russian tourists, including Turkey.
About crypto currency
The Governor of the Russian Central Bank has said at today’s meeting in the lower house of the Russian Parliament that the Bank of Russia has allowed the use of cryptocurrency in foreign settlements as an experiment.
“We agree that cryptocurrencies should not be used domestically, and for foreign settlements we assume that it is possible in the form of an experiment, this bill is being prepared in the form of an experimental legal regime.” he explained.
According to him, it is planned to create special authorized institutions where mining and settlements, which are the subject of foreign economic activity, will be carried out.
“By the way, this applies not only to cryptocurrencies operating in global systems, but also to regular digital financial assets that can rotate according to our laws. “It needs to unravel the use of digital financial assets for international settlements,” Nabiullina said.
about the mortgage
He also stressed that the Central Bank supports targeted preferential mortgage programs and that housing construction in small towns should be given priority.
“Mortgage crises are a terrible thing. We’ve seen how it is in other countries. This affects the entire economy. Therefore, our task is to ensure the balanced growth of mortgages, we are following this closely.
In our opinion, after the preferential housing loan program is completed without an address, it should only remain as an address. “In our opinion, the development of residential construction should be given priority in small towns where the market is stagnant,” Nabiullina said.