Mr Ignatyev told Mr Putin that according to the Central Bank’s assessments, the macroeconomic situation in Russia was quite favourable. The goals of the monetary policy set in 2003 had been fulfilled.
Inflation in Russia fell from 15.1% in 2002 to 12% in 2003, as projected. The fall continued in 2004, and inflation constituted 1.8% in January (according to the latest data). In the respective period of 2003 it was 2.4%, and of 2002 – 3.1%.
Additionally, the President and Mr Ignatyev discussed the results of a meeting of national bank heads held in Switzerland. In particular, Mr Putin wanted to know how leaders of the financial institutions assessed prospects for the development of the global economy.
Mr Ignatyev said that participants in the meeting showed their concern over the situation on the world currency markets, in particular sharp fluctuations in the value of the euro and the dollar.
Speaking about the exchange rate of the rouble, the Central Bank Chairman pointed out that the current priorities were to ensure a gradual decline in inflation and to prevent a steep rise in the value of the rouble.
In 2003, the real effective exchange rate of the rouble rose by 4.1%, Mr Ignatyev said. He also noted an intensive growth of Russia’s GDP (7.3%).
The Central Bank Chairman also told the President about the country’s gold and foreign exchange reserves. According to the 2003 exchange rates, the country’s hard currency reserves increased by $29 billion, and in January 2004 by another $7 billion. As of February 1, 2004 they amounted to $84 billion. Neither Russia nor the USSR has ever had such impressive hard currency reserves, Mr Ignatyev said.