Ruble strengthening owing to geopolitics, decline in demand for currency; still difficult to assess sustainability of process - Central Bank of Russia

MOSCOW. Feb 26 (Interfax) - The observed strengthening of the ruble is related to geopolitical factors and a seasonal decline in importers' demand for currency, and it is still difficult to assess the sustainability of the process and the prospects for its effect on prices, the Central Bank of Russia said in a summary of the discussion on the key rate following the February meeting of the board of directors.

"The participants agreed that it is difficult to assess how sustainable the strengthening of the ruble observed in recent weeks will be and how it will affect prices. The strengthening of the ruble was associated with both the reaction of the markets to geopolitical events and the seasonal decline in demand for foreign currency on the part of importers," the CBR said.

The CBR says that the latest data indicate some slowdown in price growth for imported goods after the ruble began to strengthen in December.