Gref called two ways to contain the strengthening of the ruble

The strengthening of the ruble exchange rate can be contained through foreign exchange interventions or by expanding opportunities for imports, says German Gref, head of Sberbank.

The exchange rate of the ruble began to fall sharply with the start of a special military operation in Ukraine at the end of February – from the level of 80 rubles per dollar and 90 rubles per euro. The historical maximum of the dollar and the euro was already set on March 10: 121.53 rubles for the American currency and 132.42 rubles for the European currency. In early March, the Russian financial authorities began to impose restrictions on the sale of foreign currency and its withdrawal abroad, and also obliged exporters to sell up to 80% of their proceeds. Against this background, the dollar and the euro began to fall actively against the ruble: in 10 weeks, the dollar and the euro have more than doubled against the ruble.

The authorities began to think about slowing down the growth of the ruble and began to gradually lift the imposed restrictions. After each easing, foreign exchange rates jump for a while, but after a few days they fall again. On Friday, the dollar fell to 56.5 rubles, the euro – 56.7 rubles.

“The ruble has strengthened for two reasons. Firstly, the transfer of currency abroad due to financial sanctions has become more difficult – the currency began to accumulate in bank accounts. Secondly, trade sanctions and self-sanctions of foreign companies have limited imports – it has become more difficult to spend the currency. strengthening of the exchange rate is possible either through foreign exchange interventions or through expanding opportunities for imports,” he told reporters after the opening ceremony of the fountain complex, an outsider in Derbent with the support of Sberbank.

„Purchases of hard currency for the accumulation of the NWF are currently unavailable, so the Ministry of Finance is studying the possibility of buying the yuan and other soft currencies. And then the situation with the exchange rate will be corrected by restructuring logistics for trade with neutral countries,” Gref added.

Michael Cooper

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