On the Bank of Russia FX policy (Unofficial translation)

Effective from 21 October 2013, the Bank of Russia cut the amount of target interventions to 60 mln US dollars a day. This adjustment was made to ensure further increase of the rouble exchange rate flexibility in the context of the ongoing transition towards the floating exchange rate by 2015.

Decreased target interventions would lead to higher sensitivity of the operational band borders to the amount of FX interventions aimed at smoothing the excess volatility of the rouble exchange rate. Ceteris paribus, the implemented modification would reduce the scale of the Bank of Russia presence on the FX market, which would enhance the effectiveness of interest rate policy.

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