Nabiullina: Fundamentally, ruble exchange rate can be sufficiently strong
MOSCOW. Sept 18 (Interfax) - The ruble exchange rate can be sufficiently strong at a fundamental level, Central Bank of Russia Governor Elvira Nabiullina said.
"Of course, the exchange rate is influenced by external market conditions, but also by our monetary policy. The strengthening of the exchange rate that occurred in the summer, everyone noticed, was largely due to the impact of tight monetary policy. As monetary conditions began to ease gradually, our exchange rate has become somewhat weak, but fundamentally, nevertheless, the exchange rate in our economy can be sufficiently strong," Nabiullina said at the Moscow Financial Forum on Thursday.
The exchange rate is formed under the influence of market factors, she said.
"When asked about the exchange rate, I suggest remembering that the foreign exchange market is a market, and the same market laws apply to it," she said.
Economic agents are usually concerned not by the weakening or strengthening of the exchange rate, but by its significant fluctuations; the predictability of exchange rate dynamics is important, she said.
"Low inflation means a more stable exchange rate, a more predictable one, one that both the budget and companies can rely on," she said.
A looser monetary policy would contribute to a weakening of the ruble exchange rate, Finance Minister Anton Siluanov said.
"If I were in Elvira Sakhipzadovna [Nabiullina]'s place, and was asked what the exchange rate will be, I would say - it all depends on the budget. If there is a balanced budget, there will be low rates, there will be a weaker exchange rate. It all comes down to this again, all roads lead here," Siluanov said.
State Duma Budget and Taxes Committee Chairman Andrei Makarov asked Siluanov: "So it all depends on you? So all complaints should be directed at you?"
"Why complaints? On the contrary, all hopes," Siluanov said.
When asked whether he hopes for a weakening or strengthening of the ruble, Siluanov replied that he supports balance.
