ALEXEI VEDEV PREDICTS THAT THE RUSSIAN CURRENCY CAN STABILIZE AT THE LEVEL OF $74 PER $1

Alexei Vedev, Doctor of Economic Sciences, Head of the Financial Studies Department of the Gaidar Institute has told the TRT Russian what the US Dollar/Rouble exchange rate is going to be like in December.

On December 19, the US Dollar and euro cost more than Rb69 and Rb74, respectively, on the Moscow Exchange. It happened for the first time since May 2022. “The balance of supply and demand for foreign currency has been upset. After a cap on prices for Russian oil was introduced, supply of oil has decreased. On the back of it, the US Dollar appreciated against the rouble. This trend was underpinned by speculative sentiments of some market participants. I think the US Dollar will consolidate at the level of Rb72-74,” Alexei Vedev explained.

Depreciation of the rouble is substantiated by a cap on oil prices ($60 per barrel) introduced by the G7 countries and Australia, as well as a forthcoming ban on petrochemical supplies from Russia. Alexei Vedev has noted that depreciation of the rouble is good for the budget and exporters of energy commodities, but disadvantageous to the manufacturing industry: “It is clear that the band of Rb65-Rb75 per $1 would be optimal for all sectors, but it may not be now.”