VTB 24's Zadornov: exact date of transition to floating ruble rate not crucial
MOSCOW. Oct 30 (Interfax) - The exact date of the transition to a floating ruble rate is not crucial, VTB 24 President and CEO Mikhail Zadornov told journalists on Thursday.
"The switch to a floating rate is necessary, whatever anyone might say now. It is an absolutely essential step. Whether the transition is from December 1 or from January 1 is not crucial. The [Central Bank of Russia's] board of directors will decide that," Zadornov said.
There is no reason to expect any special consequences of the transition. "We have already been living de facto in the very same situation over the last few months," he said, noting that the Central Bank will not remove itself entirely from the situation on the currency exchange.
"If it cancels the trading band, then the ruble is in free float, but right now it is in restricted free float. People think that the Central Bank will not make any interventions. That is incorrect," Zadornov said. Given a situation similar to the one that occurred on March 3, he said, the Central Bank will intervene.
"My assessment is that the ruble is definitely oversold. And of course that there will be movement at one point or another in the opposite direction," Zadornov said, adding that the ruble's rebound could occur before the end of the year.
