The Russian presidential aide Andrei Belousov complained of excessive strengthening of the ruble. According to him, a strong national currency leads to slower growth of Russian exports and hinders the process of import substitution.
photo: Mikhail Kovalev
Belousov told why the authorities are not interested in the growth of the ruble. “It works in the negative, reduces revenues and increases budget problems,” he explained. (The cheaper rouble against the dollar, the more ruble-denominated incomes will get the budget from oil, gas and other exporters – ed).
In addition, the excessive strengthening of national currency reduces the competitiveness of Russian industry and agriculture, but also undermined the objective of import substitution, said Putin aide.
Belousov recalled that the Bank of Russia and the government have instruments that can be used to regulate the ruble exchange rate. “How are they to decide and choose is a question of current policy and responsibility of the Central Bank of the Russian Federation and the government”, – quotes the official TASS.
We will remind that on July 19, President Vladimir Putin meeting with Dmitry Medvedev, which was dedicated to the preparation of the budget, invited the Prime Minister to “think” what to do in connection with the appreciated currency. “The ruble strengthened, despite the price volatility in commodity markets”, – said the President.
Putin asked Medvedev to think about the problem of a “strong ruble”: waiting for the devaluation
Indeed, in July the ruble gained 1.7% against the dollar and over 2% against the Euro, setting the highs from the end of 2015. While Brent crude fell by 6.6%.
As previously wrote “MK”, this dissonance can be explained by two reasons. First, the largest exporters now pay dividends, of course, in rubles. Second, exporters sell large amounts of foreign currency to obtain rubles for the payment of taxes. In addition, the Ministry of Finance’s placement of Federal loan bonds, for which demand is very high.
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