Central Bank of Russia on Tuesday, February 4, widened the boundaries of floating currency trading band by 10 kopecks against the dollar-euro currency basket (consists of $0.55 U.S. and €0.45), a bank official said on Wednesday, February 5.
According to the authority, the present-day ruble trading band of the Central Bank is established at 34.40-41.40 rubles.
The Central Bank of Russia uses the bi-currency basket mechanism in order to edge consequences of acute fluctuations in the currency rates. The boundaries of the corridor are automatically revised by five kopecks when accumulated currency interventions reach $350 million. The Central Bank announces changes to the trading band the next working day after they are introduced.
The watchdog moved the limits of the bi-currency basket corridor up 24 times in January 2014 by a total of 1.20 rubles from 33.05-40.05 as of January 1.