The Decision on the Bank of Russia exchange rate policy implementation (Unofficial translation)

The Bank of Russia External and Public Relations Department informs that the following changes to the parameters of the Bank of Russia exchange rate policy mechanism have been applied starting from the 24 July 2012:

• the symmetric widening from 6 to 7 roubles of the dual-currency basket floating operational band (the sum of 0.45 euro and 0.55 USD), aimed at preventing the excess volatility of the ruble exchange rate;
• the lower and the upper boundaries of the operational band are 31.65 and 38.65 roubles respectively as of the end of 24 July 2012;
• the decrease of the cumulative interventions threshold for shifting the boundaries of the operational band by 5 kopecks from $500 million to $450 million.

The above mentioned changes are implemented in the context of the gradual transition to the inflation targeting regime which according to the “Monetary Policy Guidelines in 2012 and for 2013 and 2014” is stated as the Bank of Russia’s priority in the middle term perspective.

The increase of the potential flexibility of the exchange rate resulting from the implemented changes should contribute to strengthening of the interest rate policy conducted by the Bank of Russia for ensuring the price stability.

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