Merrill Lynch: Central Bank of Russia will continue to manage the ruble exchange rate

Central Bank of Russia is likely to control the ruble exchange rate, even after the monetary authorities have promised to approach the policy of freely floating rates, said Benoit Anne, currency strategist at Merrill Lynch.

Bank of Russia on Sept. 14 warned of increased risk, volatility of the ruble, in a statement that accompanied the decision to cut its key interest rates for the sixth time since April.

"I read it as a signal that the central bank remains ready to intervene in currency markets, as it did in the past - said Anne in a telephone interview from London. - Gradually the Russian will be more flexible in this matter, but probably not now. " The expert stated that he foresees the strengthening of the ruble in the near term associated with the restoration of the global economy, which pushes up prices for commodities.



The financial crisis has accelerated the action of the Central Bank in terms of transition to a freely floating exchange rates and use interest rates to control inflation, said June 24 the head of the Bank of Russia Sergei Ignatiev. This goal should be achieved by 2011

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