Andrei Kostin: dollar to decline by six rubles

Until the end of 2017, the ruble exchange rate may strengthen by 10%, the head of VTB Andrey Kostin said.

"We believe that the ruble had to strengthen, but it was before  the government announced the purchase of dollars," PRIME cited him as saying.

According to Kostin, these steps are balancing the factors that could help to strengthen the ruble. The VTB head said that the ruble is undervalued and it could strengthen by 10% before the New Year.

The Chairman of the Board of the National Currency Association (NCA), Dmitry Piskulov, speaking with a correspondent of Vestnik Kavkaza, said that the ruble is not undervalued. "The dollar exchange rate at the level of 60 rubles and higher corresponds to the state of the Russian economy, the budget, inflow and outflow of investments, as well as to foreign trade," he noted.

"We are unlikely to see the dollar exchange rate declining six rubles lower against the ruble. Of course, the dollar may decline to 50 rubles, but it would not be a fair level. It would be a consequence of a speculative inflow, which in reality will be met by dollar purchases, so the dollar exchange rate will return to the level of around 60 rubles," the expert said.

However, he drew attention to the fact that, in spite of the Bank of Russia's policy of noninterference in the exchange rate, the Central Bank's purchases does not play a key role for the Ministry of Finance, as they are very small. "The Bank of Russia and the government are concerned by the strengthening of the ruble, but they cannot help it. Of course, they can take indirect measures of changes in refinancing conditions, or changes in the conditions for excess liquidity in the market," the chairman of the Board of the National Currency Association (NCA) explained.

"The fact is that this influx will not last forever. We have already seen an influx since November last year. Then there was an increase in stock indexes. Of course, the markets showed growth, but nonetheless the situation in the Russian economy is far from being complacent," the expert noted.

In addition, he pointed out that it does not give grounds to speak about the strong influence of the economy. "I think that the dollar may decline to 55 rubles, but then it will roll back to 60 rubles. Especially because oil is unlikely to rise above $60 per barrel. The summer season is coming. Consequently, less fuel will be consumed. The inventories in the US stocks are increasing, so oil prices may decline, on the contrary," Dmitry Piskulov concluded.

1950 views

Read on the subject


More Russian news

First fencing school opens in Dagestan

First fencing school opens in Dagestan

First fencing and swimming school was built in Makhachkala, but it hasn't been officially opened yet, Deputy Minister of Physical Culture and Sport of the region Zainal Salautdinov said. He added, however, that …

Qatar simplifies visa rules for Russian tourists

Qatar simplifies visa rules for Russian tourists

Qatar's authorities have introduced a visa-on-arrival system for nationals of 37 countries, including Russia, according to a document, circulated by national carrier Qatar Airways and obtained by Sputnik on Friday. "According …

Ismayil Hajiyev: Mehriban Aliyeva provides huge support to Azerbaijani music

Ismayil Hajiyev: "Mehriban Aliyeva provides huge support to Azerbaijani music"

Conductor on contemporary Azerbaijani musical culture and its promotion in the international arena

Lavrov: Russia no jealousy of Belarus-EU Rapprochement

Lavrov: Russia no jealousy of Belarus-EU Rapprochement

Russia is not resentful at Belarus' rapprochement with the European Union, Russian Foreign Minister Sergei Lavrov said. "As to the process of rapprochement between Belarus and the European Union, we do not have …

Putin and Miller give start to Turkish Stream pipeline segments jointing

Putin and Miller give start to Turkish Stream pipeline segments jointing

Russian President Vladimir Putin and Chief Executive Officer of Gazprom Alexei Miller took part in jointing of shallow and deepwater segments of the Turkish Stream gas pipeline in Friday. The head of state …

Putin: Russia ready to deliver gas to Europe through Turkey

Putin: Russia ready to deliver gas to Europe through Turkey

Russia is ready to supply gas to South and Southeast Europe via Turkey, the country's President Vladimir Putin said during the telephone conversation with the Turkish President Recep Tayyip Erdogan. …

Russia, UAE trade ties on upswing

Russia, UAE trade ties on upswing

The two countries mull joint investments in energy sector

Russian cruise missiles destroy ISIS arms depots in Syria (VIDEO)

Russian cruise missiles destroy ISIS arms depots in Syria (VIDEO)

Видео

Frigates Admiral Essen and Admiral Grigorovich and Krasnodar submarine have destroyed by Kalibr cruise missiles large depots of armaments and ammunition of the ISIS terrorists in Syria, Russia’s Defense Ministry said. "The …

Germany-Chile Confederations Cup encounter ends in draw

Germany-Chile Confederations Cup encounter ends in draw

Germany and Chile finished their 2017 FIFA Confederations Cup group stage encounter in Russia’s Kazan on Thursday with 1-1 draw. It was just six minutes into the match when Chile’s forward Alexis Sanchez delivered a first …

EU leaders vote to extend sanctions on Russia

EU leaders vote to extend sanctions on Russia

The leaders of the European Union (EU) have agreed to extend sanctions against Russia, following a similar move by the US this week, Belfast Telegraph reports. European Council president Donald Tusk tweeted on …

more Russian news