Expert: Russia’s strong current account to push ruble higher

MOSCOW, Feb 20 (PRIME) -- The ruble is now rising thanks to Russia’s strong current account, not only because of the tax payment period, and the trend is very likely to continue, Maxim Oreshkin, director of the Finance Ministry’s long-term strategic planning department, told the Federation Council, the parliament’s upper house, Friday.

The ruble has firmed against the U.S. dollar by over 6 rubles since February 4.

“I think that the dynamics of the ruble is not in any way connected with the tax payments. In general, a strong current account pushes the ruble higher and as we expect a very strong balance by the end of the year, we must not rule out that the improvement will continue,” Oreshkin said.

During the tax payment periods Russian exporting companies usually increase sales of their foreign-currency revenue in order to pay taxes. But these sales do not have such a significant impact on the ruble as before because the central bank always holds talks with the companies and analyzes the situation before.

In December 2014, after the ruble plunged in to a record low, the government ordered state-run exporting companies, including gas giant Gazprom, to cut its foreign-currency assets to the level as of October 1, 2014, by March 1. The central bank is coordinating the procedure.

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