Russia can have an unregulated ruble exchange rate only in three or give years when the Central Bank’s interest policy compensates the exchange rate policy, First Deputy Chairman of the Central Bank Alexei Ulyukayev told a Friday press conference.
The ruble will become fully convertible in 2007 when limits on monetary operations are lifted, Prime Tass quoted Ulyukayev.
There are two obstacles on the way to the unregulated ruble exchange rate – the currency market misbalance caused by the excessive supply and the insufficiently developed transmission mechanism, he said. The mechanism shows how well the banking system can transfer money from one economic sector to another, Itar-Tass reported.
The large amount of short-term capital transferred from one country to another prevents the Central Bank from the exchange rate liberation in the near future, he said. The better the Stabilization Fund sterilizes the excessive money supply, the quicker the exchange rate will be liberalized, he added.