floating exchange rate

Last December, the government secured a second IMF deal on the promise of implementing economic reforms, including a floating exchange rate.

At a press conference Friday, central bank deputy director Alexei Zabotkin said the bank is adhering to a floating exchange rate because “it allows the economy to effectively adapt to changing external conditions.”

The Russian central bank retains tools to influence the currency, Mr. Nabiullina noted, but she said a floating exchange rate remained good for the country and was helping the Russian economy absorb external changes and shocks more easily.

Policies that interfere with a floating exchange rate would end, including a government scheme that protects lira deposits against currency depreciation.

It also said there has been a shift in the past year from a managed floating exchange rate regime toward a reliance on administrative controls, including rules on surrendering foreign exchange.