Russia Still Targeting Currency Float
Russia’s central bank has widened the ruble’s trading band, suggesting that the ongoing conflict in Ukraine won’t stop the planned currency float at the end of the year.
In a statement the Bank of Russia says that it has increased the band from seven to nine rubles. The changes are intended to prepare for the shift to a freely-floating ruble, which the central bank says is important as it will allow interest rates, rather than currency intervention, to be at the centre of its policies going forward.
The central bank hasn’t intervened to keep the ruble in its targeted range since May, after spending $44 billion on preventing the currency from sharper depreciation earlier in the year.
Year-to-date the price of the ruble has gone from 32.84 to 36.29 against the US dollar.