Aleksey Vedev, Leading researcher, Financial Studies Department of the Gaidar Institute, spoke at the MICA Conference.
Scientific/practical conference dedicated to national currency, Ruble, for the first time took place in Moscow on the 1st of July on initiative of the Moscow International Currency Association (MICA) and Association of financial market professionals.  

This day in 1992, Bank of Russia issued a declaration “On official Rule rate of exchange” having equaled for the first time official rate of US Dollar vs market rate. Experts attending the Conference discussed role of Ruble in the international trade, reserves and accounts as well as currency policy of Central Bank. 

In his presentation, Aleksey Vedev highlighted principal goals of currency policy: optimization of international economic activity (in the context of economic growth), regulation of capital flows, maintenance of financial stability and support of industry competitiveness.
As known, Central Bank of the Russian Federation switched to flexible exchange rate regime I November 2014. However, expert of the Gaidar Institute skeptically assessed policy of flexible formation of Ruble exchange rate. Aleksey Vedev said: «When it is about the rate of Rb 150-200 per US Dollar, nobody moderates the exchange rate, however, when it comes to Rb 40 per Doller, ministers immediately declare:” We will not allow it!”. “I hardly understand this extent of flexible floating”.

According to Aleksey Vedev, policy of “weak” Ruble has positive impact such as growth of exporters income and stimulation of export; moderation of import growth; reduction of intrinsic value of raw materials and man power; low  portfolio investment; increase of gold and foreign exchange reserves of the Central Bank of Russia as well as negative consequences, i.e. provoking inflation, reduction of consumer demand; appreciation of investment import, growth of investment into foreign assets and capital outflow; appreciation of external state and private debt service.

Presentation can be downloaded here.