Bank of Russia denies proposal to increase import duties – Kommersant

The Bank of Russia denies reports in the media that Elvira Nabiullina, head of the Central Bank, is in favor of raising import duties to cool down demand for imports. The press service of the regulator announced this RBC.

“This information is not true. On the contrary, the Bank of Russia believes that the increase in import duties is generally a pro-inflationary factor, as it increases the prices of goods for consumers and companies that purchase imported equipment, materials and components. An increase in prices for imported goods may also lead to an increase in prices for analogue goods that are produced domestically,” the press service said.

Earlier today, August 17, Vedomosti, citing a source reportedthat Mrs. Nabiullina proposed to increase import duties at a meeting with Russian President Vladimir Putin. According to the interlocutors of the newspaper, the head of the Central Bank believes that this measure will help reduce the demand for imports. Mrs. Nabiullina named the growth of imports among the factors that led to the weakening of the ruble.

In the same Vedomosti article, citing sources, it was stated that following the meeting between Vladimir Putin and Elvira Nabiullina, it was decided not to introduce regulations on sales of foreign exchange earnings to exporters and not to restrict the movement of capital in the Russian Federation as measures against the weakening of the ruble.

At an extraordinary meeting on August 15, the Central Bank raised the key rate immediately by 3.5 percentage points – up to 12%. As Kommersant learned, market participants consider the Central Bank’s decision on the key rate insufficient to support the ruble and expect other measures, including the return of the mandatory sale of export earnings. On Vladimir Putin’s plans to hold an emergency meeting on tightening currency controls earlier informed The Financial Times, citing sources. Today, August 17, the ruble is strengthening against the dollar and the euro. As of 15:23 Moscow time, the dollar exchange rate on the Moscow Exchange is 93.69 rubles. (-0.98%), euro – 102.7 rubles. (-1.14%).

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

Erdni Kagaltynov