Damage to the Russian economy from decline of oil prices to $45.00 per barrel totaled $160 billion, said Elvira Nabiullina, said chief of the Russian Central Bank (CB).
In September 2015 CB did not expect such a “dramatic price decline.” “If the rate would not have been let free, volatility still could have been significant,” Nabiullina told journalists on Tuesday.
“We had to make unpopular and painful decisions, but we consider them absolutely necessary,” Nabiullina told journalists explaining the Russian Bank’s decision to increase rate and ensure free floating rate of ruble.
She said that CB had to make three decisions: to control inflation, to stabilize the currency market and to prevent suspension of crediting of economy.
Nabiullina said that powerful factors have affected the currency market, including slump of oil prices. Because of low oil prices the country has lost $160 billion of export incomes.
She said Russia’s incomes from export total about $500 billion.
