The Central Bank will not conduct foreign exchange interventions without a threat to financial stability


The Chairman of the Bank of Russia Elvira Nabiullina said that the regulator does not see financial stability risks in the current weakening of the ruble. She stressed that the Central Bank is ready to carry out foreign exchange interventions, but only if such a threat arises.

“We do not target the ruble exchange rate, any exchange rate is acceptable for us. We take it into account in monetary policy. The Central Bank is ready and can intervene with interventions only when it sees risks for financial stability. Now there are no such risks,” said Ms. Nabiullina during her speech at the financial congress.

Speaking about the factors of the weakening of the ruble, she recalled that exports in January-May fell by 40% compared to the same period in 2022, imports grew by 15%. Ms. Nabiullina also drew attention to the fact that the rate is formed under the influence, first of all, of the trade balance.

“There are economic objective factors, the rate is formed under their influence,” the head of the Central Bank emphasized. She again reminded that the regulator will take this into account in monetary policy to ensure the inflation target. “And the stability of the ruble is, first of all, the purchasing power of the ruble. This is determined by the level of inflation,” she explained.

Former head of regulator acknowledgedthat the weakening of the ruble carries pro-inflationary risks for Russia, and the Central Bank will take into account the situation when deciding on the key rate (now it is 7.5%). The next meeting of the Central Bank will be held on July 21.

The euro and the dollar have accelerated growth since the beginning of last week. Euro exchange rate this morning exceeded RUB 102/€ for the first time since March 28, 2022. The dollar is trading above 93 rubles/$. Formerly First Deputy Chairman of the Bank of Russia Ksenia Yudaeva bound depreciation of the Russian currency with a change in the trade balance. She noted that the regulator does not record major transactions in the foreign exchange market.

About when the fall of the national currency will stop – in the material “Kommersant FM” “The ruble has been delineated by the boundaries of weakness”.

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