The Central Bank considers administrative measures of currency control ineffective

It is better to influence capital flows and the ruble exchange rate not through administrative, but through economic measures: direct control is effective only for a limited time, Central Bank Chairman Elvira Nabiullina said at a press conference on September 15. She considers effective economic measures to be increasing the attractiveness of ruble deposits and stimulating the sale of export earnings to pay for current expenses, such as taxes and salaries.

Now, according to Nabiullina, there is a discussion on currency restrictions, but “this is largely a government decision.” Sharp movements in the ruble exchange rate did not create risks for financial stability, but increased inflationary ones. According to the Central Bank’s estimates, a 10% weakening of the exchange rate results in 0.5–0.6 percentage points in inflation. To reduce these risks, the Central Bank raised the key rate to 13% on September 15.