ALEXEI VEDEV SPECIFIED THE FACTORS OF APPRECIATION OF THE RUBLE

On September 12, Tuesday, the Russian currency appreciated against the US Dollar and euro at the end of trading. In the morning trading, the US Dollar cost Rb92.45 and euro, less than Rb100 for the first time since the end of July. Despite fluctuations, the ruble’s exchange rate against the US Dollar and euro saw maximum values since the end of August. Probably, it can be justified by RF President Vladimir Putin’s address at the Eastern Economic Forum (EEF), from which it follows that the RF Ministry of Finance and the RF Central Bank will keep looking for ways of strengthening the national currency.

The current positive shift in the exchange rate dynamics is related primarily with the actions of the government and the Central Bank on the foreign exchange market. These measures are a priori more effective and produce a quick effect on the supply and demand pattern, rather than a rise in the key rate, Alexei Vedev says. Undoubtedly, devaluation of the ruble is a menacing problem both in terms of financial stability and inflation, as well as economic outlook as a whole. According to Alexei Vedev, the ruble may enter a band of Rb85-Rb90 per $1, which is quite comfortable for the business. And if so, there is no point of raising the rate, otherwise, economic growth may suffer.