Russia’s cbank currency interventions against inflation targeting

MILAN, Jun 10 (PRIME) -- The central bank’s purchases of foreign currency to replenish foreign exchange reserves are contrary to the regulator’s policy of targeting inflation, Economic Development Minister Alexei Ulyukayev told PRIME on Wednesday.

“If we increase reserves, consequently, in such a situation we reject the policy of inflation targeting,” he said, adding that in compliance with inflation targeting Russian monetary authorities may intervene only in order to secure financial stability.

The central bank’s 2017 target inflation stands at 4%.

Russia’s foreign exchange and gold reserves rose by 0.2% in May to U.S. $356.770 billion as of June 1, according to central bank’s data. In 2014, Russia’s foreign exchange and gold reserves fell 24.4% to $385.46 billion as of January 1.

(55.9100 rubles – U.S. $1)

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