 |
AP
Mikhail Zadornov, deputy head of the Duma's budget
committee |
The State Duma on Tuesday set Wednesday to debate a bill that would slash
the proportion of hard currency earnings exporters must sell locally to
30 percent from 50 percent.
Currently exporters have to sell half of their receipts within the
country under a rule imposed after the 1998 financial crisis to prop up
the
weakening ruble. Firms were initially required to sell 75 percent of their
export receipts.
"All the required three readings will be conducted in one day,"
Mikhail Zadornov, deputy
head of the Duma's budget committee, told reporters.
The new legislation would allow the Central Bank to vary the rate
under the 30 percent ceiling. It is also expected to ease upward pressure
on
the Russian currency.
The current rule has helped the bank build up its record high foreign
currency reserves and enhanced Russia's creditworthiness. But an inflow
of
oil dollars has buoyed the ruble, making it more difficult for local firms
to compete with foreign rivals.
It has also added to inflationary pressures because the Central Bank
has had to print rubles to buy dollars from the market to keep the ruble's
appreciation in check.
Businesses were lobbying to scrap the rule altogether but the Central
Bank favored a more cautious approach.
Aton economist Peter Westin said officials should lower the ceiling
even more: "Demand for rubles is picking up, investment opportunities
are
great as we have economic stability here, inflation is going down so
incentives to keep money within Russia are increasing day by day."
The bill would have immediate effect if approved by both houses of
parliament and signed by the president.
See also:
Monetary
Policy
| 