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Glazyev: the Dollar today should be worth 25 rubles

These are estimates of the Organization for economic cooperation and development

Глазьев: Доллар сегодня должен стоить 25 рублей

The current rate of the national currency is underestimated by three times, and said on air “Russian news service” Advisor to the President of the Russian Federation on regional economic integration, academician Sergei Glazyev.

“Those are the assessments of the OECD – the organization for economic cooperation and development, it is statistics. Take a basket of goods in Russia and the USA, and see how many products you can buy at $ 100, suppose, in America, and how much you can buy in Russia from the same basket. Accordingly, it appears that the purchasing power of one dollar is equivalent to about 23-25 rubles. Is the data cross-country comparisons, a well-established technique used for over 50 years. And nobody here with these numbers does not argue,” said the economist.

In his opinion, in the current economic situation it would be reasonable from the Central Bank to fix the ruble exchange rate.

“The ideal would be to fix the exchange rate for a long period. But it needs to fix on a level that will ensure the competitiveness of the economy,” noted Glazyev.

He stressed that the level of fixation of the national currency should determine the Central Bank of the Russian Federation.

“The Central Bank limitless possibilities to stabilize the ruble exchange rate at different levels. But I would not be calling it to do at level 23-25. This should be done at the level of those vibrations, which were in the past two years – from 60 to 80. If the Central Bank after the collapse in December 2014 has fixed the exchange rate of the ruble to 80, we would today live with such a course without speculators, the economy would have adapted, competitiveness would increase, credit would go into import substitution”, – said the eye.

In his opinion, the Central Bank could still change the situation on the foreign exchange market through their interventions.

“I am sure that any economist would say that the Central Bank should return to the market and let the market understand what the ruble he thinks is right and to stay the course. Then the economy will stabilize, we are again able to plan our future,” said Glazyev.

On March 17, the official dollar exchange rate was reduced almost by 2.5 ruble. On March 18, he was set at 68,56 ruble. The Euro, in turn, was reduced by 1.6 ruble to ruble 77,16.

The weakening of the dollar started against the background of a decision by the Federal reserve, which has kept the refinancing rate unchanged — at 0.25–0.5%.

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