Russian central bank confirms increased involvement on FX market

MOSCOW, March 3 Mon Mar 3, 2014 11:34am EST

MOSCOW, March 3 (Reuters) - Russian central bank confirmed on Monday that is has increased its involvement in the foreign currency market after the rouble plummeted and said it will continue on its path to shift its main monetary policy focus to inflation targeting after situation on markets stabilises.

Traders estimated the central bank sold in excess of $10 billion on Monday to prop up the rouble, which traded at all-time lows against the dollar and the euro. The rouble closed 2.2 percent down versus the dollar.

"In connection with the non-standard situation, the central bank has increased on March 3 its presence on the foreign exchange market," the bank's press service said in a statement.

"After situation on financial markets stabilises, the Central Bank of Russia will continue on its path to switch to the regime of the rouble free float and inflation targeting."

The Central Bank is to let the rouble float freely as of 2015.

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