ST. PETERSBURG, July 2. /TASS/. A weak national currency often points to vulnerability of the economy and the lack of confidence among citizens in their own currency, Central Bank Governor Elvira Nabiullina said, adding that this is hardly what Russia should strive for.

"We are being told that a weak exchange rate is needed for the budget, but the effect of the exchange rate on the budget is also indirect as the strengthening of the ruble acts in the direction of slowing inflation, meaning in the direction of a faster reduction in the key rate than would have been the case with a weaker exchange rate. <…> A weak exchange rate often points to vulnerability, a consequence of chronically high inflation, a lack of confidence in own currency. This is hardly what one should strive for," she said at the Financial Congress of the Bank of Russia.

Nabiullina urged to value the market exchange rate, which balances the interests of different economic players. "It is important that the rate balances the interests of different economic players, and that this is done in a market manner, not through a constant battle of lobbyists, local regulation or adjustment of the rate to suit certain needs. I think that this is one of advantages of the market economy, which should be valued," she said.

TASS is the information partner of the congress.