Bloomberg: Russian authorities have accepted that the dollar will rise in price to 100 rubles
The American news agency Bloomberg admitted that the Russian authorities could accept the fact that the domestic currency would fall to 100 rubles per dollar. At the same time, the material notes, Moscow is not worried about this, although previously such prospects led to a tightening of monetary policy.
A depreciation of the ruble could benefit the Russian state budget
Two sources close to the situation, on condition of anonymity, told the agency that the weakening of the ruble is not currently a cause for concern among the Russian authorities. Moreover, “it will benefit the state budget amid plans to increase spending next year.” Thus, Russian officials are ready to allow the ruble to reach 100 per dollar.
In the current situation, 100 rubles per dollar is not so scary, although it has a certain inflationary effect
The material emphasizes that the ruble has also depreciated against the yuan, which has become the main alternative to what the Kremlin considers “toxic” currencies. On the Moscow Exchange, the Russian ruble fell 11 percent against the yuan to 13.26, its lowest level since May.
The agency recalls that, according to forecasts by the Russian Ministry of Economy, the government is planning a weaker currency: Russian officials expect that in 2025 the average exchange rate of the national currency will be 96.5 rubles per dollar. For 2024, the budget included an exchange rate of 91.2 rubles.
The Central Bank predicted another increase in the key rate
After the start of a special military operation in Ukraine in 2022, the Russian national currency weakened to approximately 120 rubles per dollar. However, it quickly recovered after the Central Bank urgently raised the key rate to 20 percent, after which it began to gradually soften it.
In 2023, the ruble has already broken through the mark of 100 rubles per dollar twice. The Central Bank responded to this by raising the key rate and tightening capital controls.
Currently the key rate is 19 percent. And it may rise again. Deputy Chairman of the Bank of Russia Alexey Zabotkin admitted that this would happen in October at the next meeting of the regulator’s board of directors. The head of the State Duma Committee on the Financial Market, Anatoly Aksakov, suggested that the “key” would be raised from the current 19 to 20 percent per annum.
Meanwhile, according to Russians, inflation can be reduced to a comfortable level of four percent or lower if the Bank of Russia lowers the key rate to less than five percent.
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