In Russia, they will not yet set standards for the sale of foreign currency earnings by exporters and impose restrictions on capital movements. The newspaper writes that the relevant agreement was reached during the meeting of Russian President Vladimir Putin with members of the government and Central Bank (CB) Governor Elvira Nabiullina. vedomosticiting sources.
According to sources, the Cabinet was able to informally agree with exporters to increase the sale of foreign currency earnings, so for now it was decided to limit themselves to watching their actions.
Overall, business representatives agreed to sell more revenue. But if the situation doesn’t change, a forced sale of export earnings will become inevitable, according to one source. The financial burden is also likely to increase.
According to the sources, those attending the meeting agreed that the tightening of currency controls was an extreme measure that could only temporarily affect the exchange rate and masked the root causes of the ruble’s weakening. They also acknowledged that the main factor behind the depreciation of the national currency was loose monetary policy, which led to an excessive increase in the money supply.
One of the meeting attendees said that the Central Bank chief explained his decision to raise the key interest rate not so much on the exchange rate situation as with increased inflationary risks. According to Nabiullina, the Cabinet should consider raising import duties to cool import demand, which has become one of the reasons for the ruble’s depreciation.
The meeting participants agreed that in addition to monitoring the sales of foreign exchange earnings of exporters, they will also develop mechanisms to curb the increase in loans. The Central Bank has promised to work with banks.
Before that, the financier saidWhy did the ruble fall after the central bank’s key interest rate decision?
August 15 Central Bank of Russia raised key rate 350 basis points, up to 12% per annum. The relevant decision was taken within the scope of the fight against inflation.
Formerly socialbites.ca saidHow a sharp increase in the key rate will affect the life of Russians.