MOSCOW, February 20. /TASS/. Excessive volatility on the Russian currency and financial markets is over but risks are still high, Central Bank First Deputy Governor Kseniya Yudayeva said in the upper house of Russia’s parliament on Friday.
The ruble came under strong pressure on the domestic currency market late last year amid falling prices of oil, a major revenue earner for the Russian budget, causing the national currency to depreciate sharply.
"I can only say that as of today the excessive upsurge in volatility that gripped the currency and financial markets last year is over," Yudayeva said.
"But we shouldn’t be misled by this as risks remain high," Yudayeva said, adding policy makers "still have to minimize" long-term consequences of the shocks that had materialized in the second half of 2014.
Russia’s Central Bank contributed to mitigating negative trends on the markets, Yudayeva said.
"The Central Bank’s measures have indeed helped mitigate the impact of external factors on the economy and prevent the development of crisis trends on the money market and quickly stop the panic among depositors," Yudayeva said.
Russia’s Central Bank hiked the main lending rate to 17% from 10.5% in mid-December in a bid to stem the ruble’s slump amid falling world oil prices, western sanctions, a faltering economy and large capital flight.
The regulator cut the key rate by 2 percentage points at its policy meeting on January 30 to facilitate lending to the economy amid lower inflationary and devaluation expectations.