A view of Central Bank of Russia, Moscow
Photo: Ivan Grankin
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Nonresidents Attack Russia’s Ruble
Central Bank of Russia (CBR) will stick to the method of foreign exchange interventions to defend national currency against foreign profiteers attempting to buy rubles at low cost. This effort of the CBR is also expected to contain inflation, RBC-Daily reported.
The first intervention of a few hundred million dollars was staged Tuesday. The CBR intends to refer to interventions each day, stepping up the amount by the end of the month, when the market lacks ruble liquidity to pay taxes.
These actions of the CBR on the foreign exchange market are also counted on to bring down the amount of ruble issue and, therefore, reduce the money pressure on inflation.
In early this month, the trio of nonresident banks, Deutsche Bank, Goldman Sachs and Dresdner Kleinwort, urged the market to buy cheap rubles at large in expectation of the CBR actions to contain the inflation.
www.kommersant.com
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