(Source: http://alenginka.homegate.ru/group)

The current level of foreign exchange reserves of Russia does not allow to maintain the rouble exchange rate, the only remaining leverage of the Central Bank is the key rate. According to RIA “Novosti”, this was stated by the Russian presidential aide Andrei Belousov on Monday, August 17.

As Belousov reminded, the rate of the rouble is currently floating. “And now we already do not have gold and currency reserves or foreign exchange reserves that we could use to support the rouble in 2013” - he noted. The presidential aide explained that the volume of reserves of the Central Bank, excluding gold, makes up a little more than $ 300 billion now.

“However, 120 billion of 300 billion account for government stock - it is the Reserve Fund and the National Welfare Fund that are stored in the currency form” – Belousov said. The rest of the reserves will be enough for nine months of import of goods, which is considered to be the minimum level, according to Belousov.

Belousov also expressed the view that the key rate of the Central Bank of the Russian Federation amounting to 11 percent now may approach the inflation target level of 4 percent in the medium term, however, in case of another fall in oil prices such a scenario is not very probable. At the same time he found it difficult to name another term of reduction of the key rate: “We cannot say how soon and with what variations this is going to happen”.