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Ruble will return to forecast values as inflation declines — Deputy PM Novak

The current strong exchange rate of the ruble reflects the market situation, he added

ST. PETERSBURG, June 19. /TASS/. The current strong exchange rate of the ruble reflects the market situation, although a weaker ruble would be more profitable for exporters, Russian Deputy Prime Minister Alexander Novak said in an interview with Naila Asker-zade on the Vesti program on the Rossiya-1 TV channel.

"Indeed, the ruble is quite strong now. The Central Bank does not regulate it either, it is a market component that reflects the current real exchange rate, the trade balance. It also reflects the strict monetary policy being conducted by the Central Bank," he said.

As inflation declines and monetary policy is relaxed, the ruble will return to forecast values, Novak added.

"Of course, it would be much more comfortable for exporters to have a weaker ruble exchange rate. However, the weakness of the ruble exchange rate also affects the inflation rate. Therefore, as inflation decreases, as the monetary policy is relaxed, we think that the exchange rate will also level out relative to the one taken into account in the socio-economic development forecast," Novak said.