Central Bank to gradually increase currency interventions
RUSSIA-FOREIGN-CURRENCY-INTERVENTION
Central Bank to gradually increase currency interventions
MOSCOW. Nov 25 (Interfax) - The Central Bank of Russia plans to gradually increase currency interventions within currency basket's floating interval.
"I believe that gradually the active element of our presence on the market will increase in contrast to the passive presence at the boundaries of the corridor," Central Bank First Deputy Chairman Alexei Ulyukayev said at a financial forum on Wednesday. The practice will make it more difficult for carry traders to make assumptions about potential revenues from operations on Russia's domestic currency market.
Within the currency basket's broad corridor - 26-41 rubles - there is a floating interval at whose boundaries the Central Bank conducts currency interventions. Those boundaries move depending on the Central Bank's purchase or sale of foreign currency on the domestic market. The boundaries are currently at 35 rubles and 38 rubles.