Following yesterday's continued slide to record lows against the Central Bank's currency basket, the Russian Ruble is rallying this morning as Russian Central Bank chief Elvira Nebiullina jawboned the threat of renewed intervention to "smooth out" markets:
- *NABIULLINA SAYS FX MKT INTERVENTIONS NEEDED FOR FIN. STABILITY
- *NABIULLINA SAYS BANK ROSSII 'SMOOTHING OUT' SHARP RUBLE SWINGS
One can only hope that - despite the bank runs, a plan not to raise rates, and a canceled bond auction - Russia has more success that Turkey is "fixing" the problem of QEasy money flows. The Ruble "basket" has reverted back to pre-Turkey levels.
The USD remains bid
But against the Central Bank's currency basket, the losses from Turkey have been reverted...
Canceled Bond auction...
The Finance Ministry shelved this week’s sale after “an analysis of current market conditions,” it said in a statement on its website.
The ministry’s “actions are understandable -- we don’t need to borrow at any cost,”
And today's jawboning:
Speaking to reporters outside Moscow, Russian central bank Chairman Elvira Nabiullina reiterates FX interventions won’t be fully abandoned.
Policy stance was previously declared and central bank is adhering to it: Nabiullina
Nabiullina: “We are planning to stick to the timetable that was announced to increase exchange rate flexibility in 2014”
Nabiullina: “We are smoothing out sharp fluctuations because we think that sharp fluctuations are harmful for everyone”