Chairman of the Central Bank Elvira Nabiullina
Photo: Sergey Fadeichev/TASS
The head of the Central Bank Elvira Nabiullina was surprised how calmly investors took the collapse of the markets caused by Britain’s decision to withdraw from the EU. Long-term consequences of Brexit will be more significant, she predicted
Market reaction to Brexit was much softer than many might assume and many expected, said Elvira Nabiullina in an interview with Bloomberg. According to her, the long-term consequences will be much more significant.
“A lot depends on what conditions will be carried out Brexit”, — said Nabiullina. The head of the Central Bank remains calm amid the decline of the pound sterling is the fourth day in a row after a sharp fall in the British currency last week.
On the morning of 7 October, the British pound sterling against the dollar in currency trading in Tokyo for two minutes plunged more than 6%. This was the strongest decline since the June referendum in which the British people voted for the country’s withdrawal from the European Union. This time the occasion was the words of French President Francois Hollande, who said that Brussels must take a tough stance against London in the course of negotiating the terms Brexit.
On October 7 at the minimum rate reached $1,1841 a pound — so cheap the British currency was not worth since March 1985. Later the dynamics changed a bit: according to 10:10 GMT, the pound was worth $1,2437, losing in the price of 1.42%. October 11, 2016, the pound against the dollar fell to $1,2258 $1,2362 in the previous session.
Among the key risks for the Russian economy previously Nabiullina called the slowdown of China’s economy. “The Chinese economy has long been a driver of global growth. What is now is a slowdown in the GDP growth of China, affecting many countries in the global economy and on us. Affects the price of oil, the commodity”, she said in September.