Russian Vice Premier, Finance Minister Alexei Kudrin
Photo: Dmitry Dukhanin
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Govt Equaled Treasury to Defense Ministry
Russia’s Government has authorized the Federal Treasury to conduct foreign exchange transactions. The Treasury needs wider power to convert rubles for Reserve Fund (the successor to a portion of the Stabilization Fund) on the public market. As to the Central Bank of Russia, it will drop the respective activities to focus on containing inflation.
Under the government’s ruling that was promulgated Friday, the Federal Treasury is currently authorized to conduct all types of foreign exchange transactions under the Federal Act on Foreign Exchange Control. So far, only the cabinet, the Central Bank of Russia and the RF Foreign Ministry, Defense Ministry and Foreign Intelligence Service have had the respective power.
Adding the Treasury to the list provides an opportunity to convert rubles on the public market. Nowadays, tax payments due to the Stabilization Fund go to the Treasury accounts in rubles. Then the money is converted into the foreign exchange at official rate and added to the CBR deposit bypassing the exchange market.
“The government and the CBR open possibilities for shifting from exchange targeting so that the CBR could focus on inflation targeting,” said Alexei Mamontov, president of Moscow International Currency Association.
www.kommersant.com
All the Article in Russian as of Dec. 03, 2007
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