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. Last Updated: 07/27/2016

'Dirty Float' to Keep Ruble on Looser Leash

The ruble is already effectively floating, but it is too soon to say what currency regime will be introduced when the current fluctuation limits expire at the end of June, a top central banker said Wednesday.

"It is clear that we have entered a period of dirty float," first deputy chairman Alexander Khandruyev told Reuters.

A dirty float, also known as a managed float, is a system in which no official parities for currencies are declared but the monetary authorities intervene in foreign exchange markets.

Russia stabilized the ruble last summer, introducing a currency "corridor" with upper and lower limits in July. The current 4,550-5,150 per dollar corridor runs until July 1.

Khandruyev said the central bank would start discussions on a new currency regime after the bank and government have agreed an economic policy declaration in February.

It was possible that the corridor could be continued.

Central Bank Chairman Sergei Dubinin has said the authorities could find some other way of regulating the ruble in the second half of the year.

The ruble has stayed well within the corridor, although in recent weeks the central bank has allowed it to dip downward.