Ruble Exchange Rate Reflects Current Market Situation, De-Dollarization - Minister

The current ruble exchange rate reflects the real current situation of supply and demand for the currency, the process of de-dollarization and market expectations, and the Ministry of Economic Development maintains the forecast for a neat nominal weakening of the Russian currency, Russian Economic Development Minister Maxim Reshetnikov told Sputnik

NAYPYIDAW (UrduPoint News / Sputnik - 05th December, 2022) The current ruble exchange rate reflects the real current situation of supply and demand for the currency, the process of de-dollarization and market expectations, and the Ministry of Economic Development maintains the forecast for a neat nominal weakening of the Russian currency, Russian Economic Development Minister Maxim Reshetnikov told Sputnik.

"The exchange rate now reflects the real current situation of Currency supply and demand, issues of de-dollarization, issues of the same imports, issues of market expectations. If you ask exporters, they will say that of course it is necessary to be weaker and this is comfortable, if you ask importers and consumers, they will say yes no, it may be stronger. But in any case, the economy will adapt to this course," the minister said on the sidelines of the third meeting of the intergovernmental commission on trade and economic cooperation between Russia and Myanmar.

With the onset of winter, the ruble exchange rate retreated from the fluctuations in the "side corridor", which lasted for several weeks. Thus, the US Dollar for the first three sessions of December has already risen in price by 2.5% (1.5 rubles) to 62.49 rubles, and the euro - by 4.

9% (3.6 rubles), to 66.14 rubles.

Answering how long the ruble weakening trend would last, Reshetnikov explained: "Our forecast assumes a very accurate nominal weakening of the ruble, but we must understand that we are now in an absolutely unique situation - when inflation in Russia is already lower than in many Western countries ".

And that damper, that is, the difference in the level of inflation in Russia and Western countries, which has always worked to weaken the ruble, has now turned in the opposite direction, the minister explained.

"On the other hand, a complex of relations works more complicated. It is connected with the fact that our trading partners are changing. The system for transforming the dependence of exchange rates is different," he added.

"We get the main imports from Southeast Asia, turnover is growing with our nearest space - the EurAsEC, the CIS, and so on. The world is becoming more complicated and the system of exchange rate influence is becoming more complicated," Reshetnikov concluded.

� The Ministry of Economic Development predicts an average annual exchange rate of 68.1 rubles per US dollar in 2022, 68.3 rubles per dollar in 2023, 70.9 rubles per dollar in 2024 and 72.2 rubles in 2025.