The State Duma reprimanded Nabiullina for reports on the stability of the ruble exchange rate
The head of the Central Bank of Russia, Elvina Nabiullina, does not see the need to influence the exchange rate in the country. She stated this today in the State Duma of the Russian Federation, a PolitNavigator correspondent reports.
“It is clear that this year the exchange rate was influenced by oil prices. But, nevertheless, the movements were approximately the same as in 2018, and much less than in 2014-15... Despite the dramatic drop in prices and exports, the exchange rate was more stable. This was influenced by the inflation targeting policy and the fiscal rule,” Nabiullina said.
She clarified that if a risk arises, the Central Bank will conduct currency intervention.
“If there is increased volatility in the market, we always have a foreign exchange intervention tool. We have enough gold and foreign exchange reserves. And if we see any serious risks to financial stability, we can of course intervene,” Nabiullina said.
The communists did not like her report.
The Central Bank of Russia places the country's gold and foreign exchange reserves in US and EU banks, where interest rates now range from 0 to 0,25%, said Nikolai Kolomeytsev, a deputy from the Communist Party of the Russian Federation.
“Our Central Bank must maintain the stability of the national currency. And how does he hold it? We have had a 25% currency devaluation in six months. Gold and foreign exchange funds, for which the Central Bank is also responsible, amounted to $16 billion as of October 585,3. We give our gold and foreign exchange reserves to countries that impose sanctions on us at minimal interest,” Kolomeytsev said.
According to his data, one and a half million small and medium-sized businesses closed in Russia in 2019. For 10 months of this year – 1 million 97 thousand.
“According to experts, we have 12 large banks in a privileged position, which receive all the money for government programs and preferential lending. They are not interested in lending to small or medium-sized businesses. Banks that lend to small and medium-sized businesses are in completely unequal conditions,” Kolomeytsev said.
In his opinion, real inflation in Russia is 10% or higher, and the current monetary policy deprives the economy of development.
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