Russian Central Bank sees no need to implement emergency monetary policy measures owing to exchange rate volatility; situation stabilizing - CBR deputy governor

MOSCOW. Nov 29 (Interfax) - The volatility currently observed on the currency market does not pose a threat to financial stability and does not require implementing emergency monetary policy measures, Central Bank of Russia Deputy Governor Philipp Gabunia said.

"We still believe that the long-term dynamics of the exchange rate are fundamentally important. What we have seen over the last week is a very short period. Volatility caused by the sanctions may indeed create short-term imbalances in the supply of currency on the market. In this case, we have already responded by changing our approach to purchasing forex earnings under the budget rule. We believe that the measures taken are sufficient to date, and we see signs that the situation is stabilizing," Gabunia said at a press conference on the regulator's financial stability overview.

Gabunia said that the CBR maintains its policy regarding the floating rate and its value "to stabilize the economy itself to external conditions and balance the interests of exporters, importers, and other participants in economic activity."

"Meantime, we have a sufficient arsenal of measures to smooth out the situation if short-term volatility caused by problems with payments creates threats to financial stability. We will apply it if necessary," he said.

"It has not gone anywhere, and it remains," Gabunia also said regarding the exchange rate's sensitivity to the key rate.

"We still know that the key rate creates additional attractiveness for ruble assets, and it also cools demand in the economy as a whole, and particularly reduces demand accordingly for currency for imports. The key rate is functioning in this part, and we do not need to take any emergency measures, because we do not see any threats to financial stability for the time being. However, we will continue to monitor the situation closely," he said.