"It is a must now to re-orient rating policies," he said to today's Moscow conference, which analysed the impact of Euro rates on the Russian economy.
Rouble rates have been closely attached to the US dollar, whose influence on the rouble is incomparably stronger than of any other national money. The latest developments, however, demand a shift in Russian rating policies. Meanwhile, these policies have unequal influences on the various economic fields. Thus, the dollar has a far stronger impact on finance than on manufacturing industries.
The Euro rate has its big ups and downs to brake in the pace of currency market progress, while all attempts to hedge hazards are doomed with smoothing up the rouble/dollar rate.
That is why the Central Bank is shifting the orientation of its rating policies as the Euro is coming into the foreground to demand greater flexibility of the currency market.
To objectively monitor rouble rates vs. the world's basic moneys, the Central Bank intends to compute a bimonetary index, which will take stock of average rates and Euro/$ rating indices. The Euro will be entitled to 10-20 per cent in index computations. Its share will be initially small eventually to rise step by step.
The Central Bank of Russia is changing its rating policies to take Euro rate fluctuations into greater account than now. Though whipping up rouble/dollar rate ups and downs, these policies will not hit financial markets, reassured Mr. Korischenko.
The Central Bank will start new index computations quite soon-within a few weeks or in a month, at the latest, he added.
