MOSCOW (Reuters) – Capital controls on certain Russian exporters that went into force last month may have the opposite of their intended effect in the long term, leading to a weaker and more volatile rouble, the Russian central bank said in a report on Tuesday.
The measure, due to last six months, requires 43 undisclosed exporting firms to deposit with Russian banks no less than 80% of foreign currency earned, and then to sell at least 90% of those proceeds on the domestic market within two weeks.
The bank also said in its report that it expected annual inflation to start coming down next spring due to Russians’ increased savings and higher interest rates.
(Reporting by Alexander Marrow and Elena Fabrichnaya. Writing by Marina Bobrova; Editing by Gareth Jones)
