ALEXEY VEDEV ON DYNAMICS OF RUBLE EXCHANGE RATE

RBC published opinion of Alexey Vedev, Head of Financial Studies Department of the Gaidar Institute, that on March 1st the market saw technical correction at the beginning of trading.

"It was an absolutely hysterical rate, because quoting Rb 107 per dollar at an oil price of $100 a barrel is geopolitical risks and investor panic." In his view, "the impact of foreign currency sales by exporters will not be noticeable before a month and a half or two months from now".

The ruble weakened sharply on Monday, February 28, with the US currency surpassing Rb 100 for the first time in history and hitting a historic high of Rb 109.185 during trading at the Moscow Exchange. To stabilize the situation on the currency market, the Bank of Russia launched currency interventions and sharply raised its key rate on Monday, February 28, from 9.5% to 20% per annum.