China says prices of key commodities fluctuate due to geopolitical conflicts
Fu Linghui, spokesman for the State Bureau of Statistics of China, said that against the backdrop of geopolitical conflicts, sanctions and counter-sanctions, high-level price fluctuations for basic commodities were recorded on the world market, reports RIA News.
“Since the beginning of this year, the international environment has changed a lot, and global commodity prices have hit new all-time highs. In the next phase, it is likely that global commodity prices will fluctuate at a high level,” he said.
The expert emphasized that Russia is a major exporter of energy, grains and fertilizers to many countries, and Ukraine accounts for a huge share of corn and wheat supplies. It is noted that against the backdrop of the conflict between Moscow and Kyiv, there was a sharp drop in the production of these products, as well as increased export controls. Demand for commodities will rise again as the world economy recovers, but the imbalance between supply and demand and the economic restrictions imposed will have a negative impact on the efficiency of global supply chains, Linghui said.
Earlier, Roman Blinov, senior analyst at IC RUSS-INVEST, explained to the Russians the danger of an endless strengthening of the ruble. According to the expert, despite the regulatory measures taken by the Bank of Russia to adjust the ruble, the pricing mechanism of the exchange rate has its own laws that no one has repealed. He doubted that the national currency would strengthen indefinitely, to levels, for example, of 60 or 50 rubles per US dollar.
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