Exchange rate stability. If you have laos telegram data a fixed or quasi-fixed rate and high inflation, then sooner or later devaluation will occur. You don’t have to look far for examples — the events of 1998, the crisis of 2008 and 2014 are fresh in most of our memories.
These are clear examples of how high inflation creates serious risks, the main ones being the weakening of the national currency, low confidence in it, chronically high rates and the currencyization of the financial system.
During the period of low inflation
in 2017-2019, when it was close to 4%, the ruble exchange rate fluctuated in a fairly wide but unchanged crm: what is its role in increasing sales and how can this tool help your business? range. This is an illustration that the Central Bank’s focus on price stability simultaneously makes the exchange rate stable. The dynamics of the exchange rate over the past 12 months is another eloquent confirmation of this. The exchange rate is now stronger than it was last summer. And this is a direct result of a tighter monetary policy, interest rates that cover the future inflation expected by the population.
And if we talk about economic growth
The law on the Bank of Russia states that monetary policy should support price stability, including for the formation of conditions for balanced and sustainable economic growth. By maintaining alb directory inflation at the target level, the central bank keeps the economy on a trajectory of sustainable growth.