Report: Econ min says ruble considerable below equilibrium value

VLADIVOSTOK, Sep 11 (PRIME) -- The Russian ruble is considerably below its equilibrium value, Economic Development Minister Maxim Oreshkin said in an interview with RBC at the Eastern Economic Forum on Tuesday.

“Actually, a foreign currency surplus is being created on the currency market which will no doubt return (the ruble) to its equilibrium value later. The ruble is below its equilibrium value now, according to our estimates, far below the value,” he said.

The global crude prices are unstably high and may fall soon, Oreshkin also said.

The minister added that according to the fundamental figures there is no “mortgage bubble” in Russia and it is far from appearing.

“Our nominal wages rise around 10% on the year, and the mortgage rates decline. Real estate prices are stable, they do not grow. On the other hand, the interest rates have dropped significantly lately. Such fundamental data… demonstrate that the market is far from a ‘bubble’ yet,” he said.

The minister also said that the central bank should make its future key rate decisions so that it could ensure long-term price stability.

Oreshkin said that foreign investors withdrew U.S. $6 billion from Russia’s debt market in April–July, and the process continued in August due to both speculations about new possible anti-Russian sanctions including sanctions against the state debt, and generally unstable situation on emerging markets.

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