The floating ruble exchange rate protects the Russian economy from external economic crises – smooths out their impact, said the head of the Central Bank Elvira Nabiullina. Thus, the exchange rate fluctuates, but does not undergo significant changes, she explained.
The head of the Central Bank recalled that seven years ago the regulator switched to inflation targeting with a target of 4%. “Before that, there was this or that course control mechanism, and I do not exclude that in this room some with nostalgia recall the times when this regime was. Because, indeed, a stable exchange rate is very important for foreign economic activity. But still, this stability was at times and apparent, because as soon as there was an external shock, we had a sharp depreciation of the exchange rate, ”said Ms. Nabiullina at the forum“ Made in Russia ”.
With a floating ruble, the country’s economy incurs lower costs, she said. “Yes, for a short time he (course. – “B”) may fluctuate a little more, but in general it allows to reduce the risks of such sharp changes in the exchange rate, “- said the head of the Central Bank. In favor of the Central Bank’s control over inflation and not the exchange rate, Ms. Nabiullina said: “Controlling inflation is generally a door for long-term money to appear in the economy. There are no cheap loans when inflation is high. ”
According to experts, the November dynamics for the strengthening of the dollar and the weakening of the ruble may continue until the end of the year. Note that the ruble strengthened in October. The Ministry of Economy estimated the annual inflation at 8.28% against 8.38% a week earlier. The Central Bank will consider the issue of changing the key rate on December 17, now it is at the level of 7.5%.
About the influence of the Central Bank’s actions on inflation – in the material “We write the ruble, two in the mind.”
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