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Russia’s economic situation not critical — Central Bank

Russia’s Central Bank has taken measures to prevent panic sentiments among the population and mass purchases of foreign currency, First Deputy Chairman Alexey Simanovsky said

MOSCOW, November 11./ TASS/. The current situation in the Russian economy and the domestic banking sector is not extraordinary or critical, Central Bank First Deputy Chairman Alexey Simanovsky said on Tuesday.

“The situation is, indeed, uneasy both in the economy and the banking sector. But it cannot be referred in any way as an extraordinary and critical situation,” Simanovsky said at a Moscow conference.

Russia’s Central Bank has taken measures to prevent panic sentiments among the population and mass purchases of foreign currency and intends to continue applying them, Simanovsky said.

“The Bank of Russia is deliberately applying measures to prevent this (panic among the population and frenzied foreign currency purchases). I hope the Bank of Russia’s measures will yield results. The Bank of Russia will also take other measures within its competence,” Simanovsky said.

The Russian foreign currency market has been hit by speculators’ attacks lately, seriously affecting the ruble, which has registered fresh lows against the US dollar and the euro.

Central Bank Chairwoman Elvira Nabiullina said on Monday that banks, the population, exporters and importers were weakening the ruble. “Unfortunately, everyone, including the population, is joining this game of expectations for a weaker ruble,” Nabiullina said in an interview with Rossiya-24 TV Channel.

“This game (for the ruble’s weakening) also involves banks and companies. Exporters may delay the sale of foreign currency proceeds while importers may buy up large amounts of foreign currency because they have to pay for their contracts. This behavior arises from constant expectations of the ruble’s weakening,” Nabiullina said.

The Central Bank of Russia is closely watching the situation and will take measures for its stabilization, the Central Bank chief said.