Ruble slides further amid economic slump | Russia Beyond The Headlines

Ruble slides further amid economic slump | Russia Beyond The Headlines:

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          The ruble-to-dollar exchange rate continued to fall in early August, despite high oil prices,
which have returned to the area of $108 per barrel. Source: PhotoXpress

In early August, the Central Bank of Russia reported on July currency interventions. It sold $4.2 billion and €374 million—the largest volume since October 2011. The greatest part ($3.1 billion) consisted of planned interventions, the volumes of which are determined after assessment of the foreign trade balance and the dynamics of oil prices.
The remaining $1.1 billion consisted of corrective interventions at a volume of up to $200 million per day. The Central Bank carries out these interventions when the rate reaches the boundaries established for the internal operations fluctuation band, which has a width of 1 ruble (the main corridor is 7 rubles).
As the bank sees it, its task is to smooth out the short-term rate movements. Selling or buying (depending on which barrier, higher or lower) $450 million, the Central Bank shifts the boundaries of the corridor by 5 kopecks."

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