Central Bank can use FX purchase mechanism to offset any oil price movement - Siluanov
UFA. July 8 (Interfax) - Although the ruble has weakened due to the oil price decline triggered by the financial market situation in China, the Central bank can use the FX purchase mechanism to offset price movements, Finance Minister Anton Siluanov said.
"We have in fact experienced a consequence of the Chinese market decline in the form of a reaction in commodities, which caused changes in the balance of payment positions. That also put the ruble under pressure. But no catastrophe is possible here," Siluanov said in Ufa on Wednesday at a briefing held in conjunction with the BRICS summit.
Siluanov mentioned the Central Bank's interventions in recent months on the currency market, where it is buying approximately $200 million in FX daily to replenish international reserves.
"Two hundred million dollars is approximately $15 on the price of oil. That is, if oil prices move lower, that is a substantial reserve. The Central Bank, I think, will react. This is a Central Bank task. But I think that the question of purchases will offset all oil price changes that could occur," he said.
The Chinese financial market situation has had an impact from the standpoint of finances, capital flows and balance of payments, but only a minimal one, he said.
