Central bank says committed to floating ruble rate

MOSCOW, Apr 20 (PRIME) -- The central bank is committed to a floating exchange rate of the ruble and sees currency market interventions justified only when financial stability is threarened, Chairwoman Elvira Nabiullina said Thursday at a speech before the State Duma.

"We keep our commitment to the floating rate as an effective stabilizer of the national economy. We see it justified and necessary to intervene in the foreign currency market only when events there create a threat to the financial stability, as, for instance, was the case last spring," Nabiullina said.

The central bank sees its previous measures as factors of the current market stabilization. The ruble rate reflects the exports, imports and financial transactions, the official said.

The central bank rules out significant changes in the foreign currency restrictions soon, she said.

Nabiullina estimated banks' lending potential from the central bank’s measures at 25 trillion rubles, including 15 trillion rubles after a temporary cancellation of capital adequacy ratio buffers and 10 trillion rubles thanks to stimulating measures.

Mortgage growth has continued, partially thanks to state support, but the growth has normalized, the official said.

"But we shouldn’t forget the key goal of mortgage – affordability of housing for the people. To make the price of a flat, the credit they have to repay for many years affordable, not excessive compared with their future income,” Nabiullina said.

“This is why we now have to pay attention to the problems arising in mortgage – we cannot afford growth of risky mortgage and we are already using our instruments here.”

(81.6549 rubles – U.S. $1)

End