Bank of Russia hires deputy to head up monetary policy implementation

The Bank of Russia is reshuffling its top ranks, adding a fifth first deputy governor to oversee the implementation of monetary policy as it seeks to complete a shift from a managed exchange rate to an inflation-targeting framework.

Governor Elvira Nabiullina today announced the central bank had made an "organisational decision" to appoint a first deputy responsible for monetary policy, adding that Dmitry Tulin, a former deputy chair at the bank, will take up the position "in a few days".

Tulin's appointment is part of a decision to split responsibilities for price and financial stability between two first deputy governors. It will see Ksenia Yudaeva, currently in charge of both areas, focus only on the latter.

The change follows criticism, including from Russian president Vladimir Putin, over the Bank of Russia's handling of a rouble sell-off in December that saw the currency plunge to record lows.

Nabiullina denied Yudaeva had been relieved of responsibility for monetary policy as a result of last month's events. "Yudaeva is one of the best Russian economists," she said.

"Thanks to her analytical experience, we also expect to improve significantly the [Bank of Russia's performance in the areas of] research and statistics."

Nabiullina also praised Tulin's "very wide, indeed universal practical experience" in banking, adding the new first deputy "has a deep understanding of how the financial sector functions".

"I believe this is the best combination of qualities when working in the current difficult and rapidly changing environment," Nabiullina said.

The Bank of Russia's board of directors currently consists of 13 people, including the governor, four deputy governors, and – until now – four first deputies, each of which is responsible for one or several areas of operation.