Ruble exchange rate reflects current de-dollarization-Russian minister
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Russian Economic Development Minister Maxim Reshetnikov says that the exchange rate now reflects the real current situation of currency supply and demand, issues of de-dollarization, issues of the same imports, issues of market expectations.
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Ruble exchange rate reflects current market status, de-dollarization
The current ruble exchange rate indicates the real present situation of supply and demand for the currency, the process of de-dollarization and market expectation. The Ministry of Economic Development maintains the forecast for the Russian currency's neat nominal weakening, Russian Economic Development Minister Maxim Reshetnikov told Sputnik.
"The exchange rate now reflects the real current situation of currency supply and demand, issues of de-dollarization, issues of the same imports, issues of market expectations. If you ask exporters, they will say that of course it is necessary to be weaker and this is comfortable, if you ask importers and consumers, they will say yes no, it may be stronger. But in any case, the economy will adapt to this course," the minister said on the sidelines of the third meeting of the intergovernmental commission on trade and economic cooperation between Russia and Myanmar.
With the beginning of winter, the ruble exchange rate took a step back from the fluctuations in the "side corridor", which lasted for some weeks. Thus, the US dollar has already risen in price by 2.5% (1.5 rubles) to 62.49 rubles for the first three sessions of December, and the euro - by 4.9% (3.6 rubles), to 66.14 rubles.
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“Our forecast assumes a very accurate nominal weakening of the ruble, but we must understand that we are now in an absolutely unique situation - when inflation in Russia is already lower than in many Western countries," Reshetnikov said answering a question on how long the ruble weakening trend would last, adding that the difference in the inflation level in Russia and Western nations, which always worked with the intention to weaken the ruble, has now turned in the opposite direction.
"On the other hand, a complex of relations works more complicated. It is connected with the fact that our trading partners are changing. The system for transforming the dependence of exchange rates is different," he added.
"We get the main imports from Southeast Asia, turnover is growing with our nearest space - the EurAsEC, the CIS, and so on. The world is becoming more complicated and the system of exchange rate influence is becoming more complicated," Reshetnikov concluded.
The Ministry of Economic Development predicts an average annual exchange rate of 68.1 rubles per USD in 2022, 68.3 rubles per USD in 2023, 70.9 rubles in 2024, and 72.2 rubles in 2025.
