The newspaper Metro published opinion of Alexei Vedev, Head of the Financial Studies Department at the Gaidar Institute, on the reasons for the ruble’s weakening.

On Tuesday, for the first time since September 14, the dollar exchange rate on the Moscow Exchange exceeded Rb100. According to Alexei Vedev, the key rate increase by the Central Bank to strengthen the ruble exchange rate is deferred.

“Measures of the Bank of Russia aimed to strengthen the ruble and slowdown inflation will actuate no earlier than Q2 2024”, the economist believes. He noted that growth of the dollar exchange rate is associated with foreign trade “facing structural problems.”

“The market is distorted: many banks do not have dollar correspondent accounts, they are limited in settlements, and this makes the ruble weaker. There is also a deficit of imported products, and importers may have a shortage of foreign currency to settle accounts with foreign suppliers, which also makes the ruble weaker,” Alexei Vedev explained.

The expert predicts strengthening of the ruble exchange rate in October closer to Rb80–90 per dollar.