MOSCOW: The strengthening of the Russian currency is short-term, and it may slightly weaken in the nearest future and then stabilize, Economic Development Minister Maxim Oreshkin said Friday. “We assume that the strengthening [of the ruble] is short-term and is not related to fundamental factors. On the whole we expect a slight weakening of the ruble in the nearest future, after which it will stabilize,” he said. There are no plans to assume measures responding to the ruble appreciation: “The authorities do not plan any new actions. The Central Bank sticks to a floating exchange rate, the Finance Ministry will continue purchases launched on February 7,” he said, adding that the Finance Ministry purchases around $100 mln each day now.
As reported earlier Russia’s Finance Ministry has started foreign exchange purchase and sale operations on the domestic forex market. The amount of operations will depend on the amount of oil and gas revenues of the Russian federal budget. The move is aimed at increasing the stability and predictability of the domestic economic environment and mitigating the impact of varying energy resources market situation on the Russian economy. In February, the amount of extra oil and gas revenues will be worth 113.1 bln rubles ($1.9 bln). The foreign currency purchases are expected to have an immaterial effect on money market rates, the Finance Ministry and Central Bank said earlier.
