Sunday, October 13, 2013

13/10/2013: Predictably, Russia pushes on toward ruble free float

One interesting note on Russian economy from recent news flow: the push toward free float for ruble continues, with the Bank Rossiy under new stewardship predictably continuing with the old policy objectives (as I predicted back in March:

Latest news is that Bank Rossiy (Bank of Russia) broadened the band for interventions in ruble exchange rates to 3.1 rubles for euro/dollar basket - trippling the previous targets. The plan is still to get rid of the bands by 2015. Thereafter, inflation targeting (possibly with broader growth metrics in mind too) will be the main target. Side effect - expect dollar (and euro) reserves to rise on this move as interventions become less frequent.

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