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Russian says forex purchases don't contradict floating regime
May 14, 2015 / 2:37 PM / 3 years ago

Russian says forex purchases don't contradict floating regime

MOSCOW, May 14 (Reuters) - The Russian central bank’s operations to buy forex to top up its reserves do not contradict the country’s floating exchange rate regime, the central bank said on Thursday.

“Similar operations, directed at regulating the volume of forex reserves, are carried out by many central banks following a floating exchange rate regime,” the bank said in comments to Reuters.

The bank said that its purchases would be carried out equally in the course of the day without being linked to particular exchange rate levels.

It also said the new forex operations would be neutral for the tightness of monetary policy, because it intends to sterilise the additional rouble liquidity by reducing limits on its rouble refinancing operations.

Current conditions on the currency market do not threaten financial stability, the bank said, adding that if there were such a threat it would intervene on the market “in the framework of the existing floating exchange rate mechanism”. (Reporting by Elena Fabrichnaya; Writing by Jason Bush; Editing by Alexander Winning)

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