authorities will not tighten currency control yet – Kommersant

For the time being, there will be no introduction of regulations on sales of foreign exchange earnings to exporters, as well as restrictions on the movement of capital in Russia. According to sources Vedomostisuch a decision was made at a meeting of President Vladimir Putin with the head of the Central Bank Elvira Nabiullina.

According to the sources of the newspaper, the meeting participants decided to consider the tightening of currency control as an extreme measure, which can temporarily affect the exchange rate, but at the same time hide the fundamental reasons for the weakening of the ruble. The main reason for the weakening of the ruble at the meeting was called a soft monetary policy – a consequence of this was an increase in the money supply.

According to the publication’s sources, the government managed to negotiate with exporters to increase the sale of foreign exchange earnings. In this regard, it was decided to confine ourselves to monitoring their actions. At the same time, as noted by one of the interlocutors of the newspaper, the sale of export earnings will become inevitable if the situation does not change.

In addition, the meeting participants agreed to develop mechanisms to curb the growth of lending. The Central Bank promised to carry out relevant work with banks.

According to one of the meeting participants, Elvira Nabiullina explained the decision to raise the key rate by increased inflationary risks. To reduce demand for imports, which became one of the reasons for the weakening of the national currency, the government was asked to think about increasing import duties.

At an extraordinary meeting on August 15, the Central Bank raised the key rate immediately by 3.5 percentage points – up to 12%. How found out Kommersant, market participants consider the decision of the Central Bank on the key rate insufficient to support the ruble and expect other measures, including the return of the mandatory sale of export earnings. The newspaper previously reported on Vladimir Putin’s plans to hold an emergency meeting on tightening currency controls. The Financial Times with reference to sources.

More details – in the material “Speculation has been imprinted on the dollar”.

Anastasia Larina