Cbank chairwoman says ruble volatility still problematic

MOSCOW, Jun 5 (PRIME) -- The volatility of the Russian ruble remains an issue but will be decreasing as far as the economy keeps on diversifying, the central bank’s Chairwoman Elvira Nabiullina said during a speech at the State Duma, the parliament’s lower house, on Monday.

“The ruble volatility remains a problem – many businessmen complain about this… The exchange rate volatility will be decreasing as far as the dependence of the economy on exports of solely minerals decreases. As far as the economy will be diversifying, if you look at the experience of other states, those which have a diversified economy, where inflation is low, the exchange rate is more stable,” Nabiullina said.

The central bank will continue to follow a policy of floating rubles, she said. The policy has helped the authority retain a safety cushion in the foreign exchange and gold reserves, and the central bank has a long-term goal to raise the reserves to U.S. $500 billion.

The central bank is not worried about the level of carry trade from the point of view of a possibility of a sharp capital outflow. “We are carefully watching, there is some carry trade but the level is moderate.”

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