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. Last Updated: 07/27/2016

CB Head: Oil Won't Hurt Ruble

Central Bank Chairman Viktor Gerashchenko said Thursday the ruble would remain stable despite falling oil prices.

"I do not think the potential drop in prices for energy resources to some critical threshold will reflect strongly on the ruble exchange rate. I think the ruble will remain fairly stable," news agencies reported Gerashchenko as saying.

The Central Bank submitted its final proposal for 2002 monetary-fiscal policy to the State Duma on Monday. The Duma had objections to an earlier draft, in part because it didn't take into account changes in the market for energy resources or the global economy.

Gerashchenko defended the Central Bank's slow devaluation of the ruble, saying "theoretically and practically, no country ever reached economic success by continually weakening its national currency," news agencies reported.

The Central Bank does not plan to significantly alter the structure of its gold and currency reserves with the advent of the euro, he said.

Gerashchenko on Wednesday again criticized amendments to the Central Bank law, which passed a first reading in the State Duma last year. He sent a letter, posted on the Central Bank's web site, to Duma Speaker Gennady Seleznyov calling for the amendments to be returned to a first reading.

The amendments "undermine the most important bases of the Central Bank's activities and the principle of its independence established by the Constitution," he said in the letter.