Russian markets rode out Brexit volatility fairly smoothly – Nabiullina

Elvira Nabiullina file photo

ST. PETERSBURG. June 30 (Interfax) – Russian markets made it through the surge in volatility caused by the UK’s vote to leave the European Union fairly smoothly, Central Bank chief Elvira Nabiullina said at a financial conference on Thursday.

“Speaking about Brexit, in or estimate its direct influence on the Russian financial system and economy will be fairly limited. We’ve already seen that Russian markets made it through fairly smoothly the initial surge in volatility that gripped global markets after the announcement of the results of voting in the UK,” Nabiullina said.

The long-term impact will depend on the specific agreements between the UK and the EU and their impact on the global economy and financial markets, Nabiullina said.

“This year is not over yet, but one ‘black swan’ has already flown. This is Brexit, which was largely unexpected for the market. One must, of course, try to foresee risks, but this is not always possible, so it’s important to ensure the stability of the system in the face of various types of risks, even unforeseen ones, and to have a whole range of tools on hand to stabilize the situation on financial markets and in the economy,” Nabiullina said.

“The low rates of global economic growth are causing a loss of confidence and feeling of dissatisfaction among people in many countries. The growth of discontent, which is actively exploited by populists, is in large part related to the loss of the dynamism of economic development this decade,” Nabiullina said.

There are various reasons for this, including an aging population, contraction of the economically active population, a slowdown in countries that were powerful drivers of economic growth, such as China, and the absence of breakthrough technologies.

[featured image is file photo, from another occasion]