Following yesterday's continued slide to record lows [5] 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, [5] 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
[6]
But against the Central Bank's currency basket, the losses from Turkey have been reverted...
[7]
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”