Econ Minister: Russian ruble rate reflects market situation

NAYPYIDAW, Dec 5 (PRIME) -- The current exchange rate of the ruble reflects real balance between supply and demand, as well as de-dollarization and the market expectations, Economic Development Minister Maxim Reshetnikov told PRIME on Monday.

“The rate reflects the real situation of supply and demand of the currency, the de-dollarization issue, the issues of imports and market expectations … The economy will adapt to the rate anyway,” he said.

The ministry’s forecast reflects a slow and gradual nominal weakening of the ruble, but Russia is in a unique situation when its inflation is slower than inflation in many Western countries. The inflation factor always worked against the ruble when Russian inflation was high, but now the tables have turned, he said.

On the other hand, Russia’s trade partners have changed and the system of transformation of dependencies of exchange rates is different as the country is now receiving the majority of imports from Southeast Asia, he said.

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