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Putin rejects devaluation as ruble hits 5-year low

Published on Jan 22, 2014 9:40 PM
 
President Vladimir Putin on Wednesday, Jan 22, 2014, dismissed growing speculation about an imminent currency devaluation as the Russian ruble hit five-year lows amid growing capital outflows and diminishing central bank support. -- FILE PHOTO: REUTERS

MOSCOW (AFP) - President Vladimir Putin on Wednesday dismissed growing speculation about an imminent currency devaluation as the Russian ruble hit five-year lows amid growing capital outflows and diminishing central bank support.

The Russian leader said a day after a meeting with Central Bank chief Elvira Nabiullina that the government welcomed greater ruble flexibility that could reinvigorate sluggish growth.

The Central Bank had announced earlier this month that it was withdrawing "targeted" daily currency trading interventions as it gradually moves toward a fully floating exchange rate by the start of next year.

"The Central Bank is now only partially involved in currency regulation," Mr Putin said during a meeting with university students in Moscow.

 
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