Leading Russian Bankers Hold Emergency Meeting to Discuss Ruble Devaluation

Bankers have asked the Central Bank of Russia to introduce a fixed preferential exchange rate for the Ruble; however, the regulator has refrained from doing so for now.

The collapse of the Russian currency was the main reason for holding an emergency meeting of the representatives of the Russian Central Bank and leading bankers of the country on Thursday, January 21st. The importance of the meeting is evident as the Chairman of the Bank of Russia, Elvira Nabiullina, cancelled her trip to the World Economic Forum in Davos without explanation.

During the meeting the possibility of adopting urgent measures to reduce the impact of the fall of the Ruble on the stability of the banking system was discussed. The Chairman of the Association of Regional Banks of Russia, Anatoly Aksakov, said yesterday that without the intervention of the Central Bank a number of financial institutions will soon be unable to fulfill their requirements.

One of the possible ways to support banks, according to Aksakov, is the application of a fixed preferential exchange rate. This exchange rate was introduced after the devaluation of the Ruble in late 2014 and contributed to an active credit policy by the banks.

However, Aksakov said after the meeting that the Central Bank considered the current situation and decided not to introduce a preferential rate, though it did take note of the proposals made by the bankers, assuring them that it "monitors the situation closely." The head of the Association of Regional Banks of Russia said that the participants of the meeting came to the conclusion that the situation is stable and under control.

  Russia, ruble, Central Bank of Russia

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