The Central Bank chose to issue money to the spending of gold reserves

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Центробанк предпочел денежную эмиссию расходованию ЗВР

The Bank of Russia prefers the issue of money spending foreign exchange reserves to Finance the budget deficit. This was stated by the head of the Central Bank Elvira Nabiullina in interview to the newspaper “Vedomosti” published on Thursday, June 30.

As noted Nabiullina, the CBR believes the issuance to be justified in the current circumstances. “Otherwise it will decrease the reserves of the country as a whole. They are divided into the assets of the Ministry of Finance and assets of the Central Bank and if the assets of the Ministry of Finance will be reduced and we will sell the currency in the market, and reduced foreign exchange reserves. But since our economy is in conditions of high external turbulence, to ensure financial stability, we should reduce foreign exchange reserves and to the extent possible, they should even increase, although by all international standards, they have enough,” she explained, adding that so far sees no possibility to resume the replenishment of reserves.

Conducted emission, according to Nabiullina, the asset-backed Finance, which are transferred in the assets of the Central Bank. “In order to avoid inflationary effects, we absorbere excess liquidity. Therefore, there is no direct impact on inflation and doubts about the security of this issue, too,” — said the head of the Central Bank.

Nabiullina also expressed the view that the level of inflation in the 4 percent growth of the Russian economy could reach 1.5-2 percent per year. At the same time, she noted that low inflation and macroeconomic stability is not enough for investment growth.

June 17, first Deputy Chairman of the Bank of Russia Ksenia Yudaeva said that the inclusion of machine harmful because it creates the illusion of easy solutions. “Any child knows “what to do to build a house, draw, shall live.” But there are serious people discussing: let us run economic growth on a printing press,” said Yudaeva.

In late may, Deputy Minister of economic development Alexei Vedev said that according to the results of current year inflation will be 6.3-6.5 percent. To a level of four percent, this figure will drop in 2019, according to the Department.

In 2015, inflation in Russia amounted to 12.9 percent in 2014, 11.4 percent.

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