Russia boosts forex firepower as ruble weakness shifts inflation risks to upside
Russia flexes reserves to tame ruble volatility, but economy remains weak
Russia has more than quadrupled the amount of dollars it is prepared to sell to maintain the value of the ruble at a given level. It unveiled the move yesterday, hours after it surprised the markets with a 150 basis point hike to its key policy rate aimed at calming foreign exchange volatility.
The Bank of Russia will now spend up to $1.5 billion before it shifts the target band for the ruble against a basket of $0.55 and €0.45, compared with the previous trigger of $350 million. The central
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