The Decision on the parameters of the Bank of Russia FX policy implementation (Unofficial translation)

The Bank of Russia External and Public Relations Department informs that effective from 7 October 2013 the Bank of Russia widened from 1 to 3.1 roubles the “neutral” range of the dual-currency basket floating operational band, where the Bank of Russia does not conduct interventions aimed at smoothing the excess volatility of the ruble exchange rate (the total width of the dual-currency basket floating operational band (7 roubles) was left unchanged).

The above mentioned change was implemented in order to further increase the flexibility of the rouble exchange rate and to proceed the gradual transition to the floating exchange rate regime by 2015. The increase of the potential flexibility of the exchange rate resulting from the implemented changes should contribute to strengthening the effectiveness of the interest rate policy conducted by the Bank of Russia for ensuring the price stability.

In addition, in order to increase the FX policy transparency and enhance its understanding by economic agents the Bank of Russia decided to widen the range of the disclosed information on the parameters of the Bank of Russia FX policy implementation. The detailed description of the Bank of Russia FX policy mechanism is published on the Bank of Russia website in the subsection “The Bank of Russia FX policy” of the “Monetary policy” section.

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