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.

1250 views

Read on the subject


More Russian news

Austrian Chancellor calls on EU to soften sanctions against Russia

Austrian Chancellor calls on EU to soften sanctions against Russia

Chancellor of Austria, Christian Kern, made an appeal to review the sanctions against Russia. According to him, such measures have not led to an improvement in the situation on the key contentious issues, Bloomberg reports. The EU must …

Russia to Buy Iranian Crude Oil

Russia to Buy Iranian Crude Oil

Tehran and Moscow are close to signing an agreement for the export of 100,000 barrels per day of Iranian oil to Russia, Oil Minister Bijan Namdar Zanganeh said on Tuesday. "The two sides will seal an agreement on oil export to …

NATO ships show aggression towards Russian ships at Syrian coast

NATO ships show aggression towards Russian ships at Syrian coast

Today, at a meeting with Russian President Vladimir Putin, the Russian sailors claimed that NATO ships were near the Russian ships, serving at the Syrian coast. Also, the sailors noted that the actions of the Alliance ships were not …

Four thousand immigrants from Russia fight on Syrian side, Putin says

Four thousand immigrants from Russia fight on Syrian side, Putin says

A huge number of fighters from Russia and former Soviet republics fight in Syria, Russian President Vladimir Putin said at a meeting with officers of the Northern Fleet. According to the President, there are thousands of Russian …

Will EU continue to support Kiev?

Will EU continue to support Kiev?

Видео

Ukraine need to stop declaring war on Russia and acting on behalf of Europe

Saakashvili can face trial for violation of sovereignty of Ukraine, media reports

Saakashvili can face trial for violation of sovereignty of Ukraine, media reports

  Ukrainian human rights activist Oleg Kurchin submitted an application to the prosecutor general of the country on the ex-governor of the Odessa region, Mikhail Saakashvili, for the violation of the sovereignty of Ukraine, the …

Russian citizens can visit Armenia with internal passports starting from tomorrow

Russian citizens can visit Armenia with internal passports starting from tomorrow

Starting from 23 February the citizens of Russia will be able to visit Armenia with internal passports. Russia’s Foreign Minister Sergey Lavrov announced about this during today’s meeting with Foreign Minister of Armenia Edward …

Kerch Strait ferry line works again

Kerch Strait ferry line works again

The work of the Kerch Strait ferry line was resumed. Previously, the crossing was closed because of the deteriorating weather conditions. Earlier, the EMERCOM rescuers warned the residents of the Krasnodar Territory about strengthening …

Vitaly Churkin#039s body returned to Moscow

Vitaly Churkin's body returned to Moscow

A plane carrying the body of the permanent representative of Russia to the UN Vitaly Churkin has arrived in Moscow from New York. The plane arrived three days after Churkin died suddenly the day before his 65th …

Russian President lays wreath at Tomb of  Unknown Soldier

Russian President lays wreath at Tomb of Unknown Soldier

Russian President Vladimir Putin laid the wreath at the Tomb of the Unknown Soldier to celebrate the Defender of the Fatherland Day. The ceremony was also attended by the Russian Prime Minister Dmitry …

more Russian news