20 Apr 2023 12:49

Nabiullina: It is currently inadvisable to change existing currency restrictions substantially

MOSCOW. April 20 (Interfax) - It is currently inadvisable to change the existing currency restrictions substantially, Elvira Nabiullina, Governor of the Central Bank of Russia (CBR), said at a plenary meeting of the State Duma.

"Part of the restrictions remain, primarily of a reciprocal nature, and we believe that it is currently inadvisable to change them substantially," Nabiullina said.

The CBR governor recalled that strict currency restrictions were introduced in the spring of 2022. They were necessary in order to stabilize the forex market when part of the Russian Federation's international reserves had been frozen. At the same time, the restrictions were in response to the sanctions, Nabiullina added.

"We consider it acceptable and necessary to intervene in the operations of the forex market only when events on it pose a threat to financial stability, as was the case last spring, for example," Nabiullina noted.

Part of the forex restrictions have been subsequently relaxed or lifted.

"In our opinion, this was absolutely necessary, so as not to create obstacles for our companies that need to rebuild rapidly and radically their foreign economic activity, and the system of international settlements. The restrictions would interfere with our companies building their foreign economic activity," Nabiullina stressed.