At the Moscow Financial Forum, Chairman of the Supervisory Board of the Moscow Stock Exchange Sergei Shvetsov made a warning. According to him, excessive use of foreign exchange regulation tools may carry some dangers and lead to inefficiency. RBC reports this.
“It’s about currency regulation. These measures – there is quite a lot of research – need to be implemented to solve tactical problems. A single currency regulatory norm has not been in force for more than six months,” Shvetsov said.
According to him, long-term restrictive measures make the market non-transparent and less competitive. “Abusing currency regulation is very dangerous. But the most important thing is that this will not be effective,” emphasized the former deputy governor of the Central Bank.
In mid-September, Central Bank president Elvira Nabiullina also warned About the limited effectiveness of currency control measures as business will always find loopholes. Nabiullina suggested that we remember the experiences of the late 1990-2000s, stating that the longer it lasts, the less effective it will be.
Previously, the Central Bank spoke against Chinese-style segmentation of the foreign exchange market.