17 Sep 2009 10:53

CB to smooth out ruble

MOSCOW. Sept 17 (Interfax) - The Central Bank of Russia's currency policy for 2010-2012 will aim at smoothing out the volatility of the ruble against the bi-currency basket (0.45 euro and $0.55), according to a draft of the CB's main monetary aims in 2010-2012, which has been seen by Interfax.

The bank will continue to employ mechanisms to limit volatility such as automatically changing the basket's allowable thresholds depending on the level of CB intervention.

The document said that in January of this year, the CB expanded the bicurrency basket's corridor, setting its minimum and maximum levels at 26 rubles and 41 rubles. This was implemented in order to increase rate flexibility gradually. At the same time, the CB performed operations outside of this corridor in order to maintain rate stability and avoid extreme volatility.