Photo: Alexander Demyanchuk / RIA Novosti
Surveyed by Bloomberg economists believe that the best way to remove the negative effects from the strengthening of the ruble to the Russian budget — spending cuts and the privatization of state assets. According to the Agency, of the other options, analysts have proposed to reduce the budgeted price of oil or to raise taxes.
The experts agreed that a floating exchange rate — a boon for the Russian economy and financial system, and it in no event it is impossible to cancel any fluctuations of the currency. They believe that a stable currency and an independent Central Bank in the long term is more important for the investment climate in the country than short-term gains from artificial devaluation.
MATERIALS
00:04 18 Jul 2016
Divorced from reality
Why the ruble is growing without any reason
July 21, Deputy Chairman of Vnesheconombank Andrei Klepach said that the depreciation of the dollar on one ruble costs the Russian budget of 150-160 billion per year. Presidential aide Andrei Belousov, in turn, said that the strengthening of the ruble is excessive and leads to slower export growth.
At the same time, the Bank of Russia has stressed it has no plans to abandon the floating exchange rate of the national currency, as well as to influence its level. The Central Bank believes that this is an effective means of stabilizing the economy. The President of Russia Vladimir Putin at a meeting with Prime Minister Dmitry Medvedev on July 19 noted that the government needs to decide how to act based on the strengthening of the ruble.
