ALEXEY VEDEV: “TRYING TO WITHDRAW DOLLARS AND EURO FROM BANKING ACCOUNTS AND ATM IS AN ABSOLUTELY WRONG TACTICS”

The Central Bank has taken exceptional measures to support the ruble amid sanctions against Russia for the military operation in Ukraine. The key rate soared to 20%. Now 80% of exporters' foreign currency proceeds are subject to compulsory sale on the exchange. Alexey Vedev, Head of Financial Studies Department of the Gaidar Institute, told MK about the prospects for the ruble exchange rate in a tense geopolitical situation.

"Basically, I approve the decision of the Central Bank. However, the uncertainty is so high and the sanctions are so tough that it is almost impossible to make any predictions now. Let's wait at least a few days until the geopolitical situation comes to a relative equilibrium.

If the Central Bank set its key rate at 20%, this means that it estimates potential inflation at 15-17%, probably 18%.

It is clear that Rb 107 per dollar is an absolutely hysterical rate, which does not correspond to any realities. In the near future we can expect restrictions on exchange trading, which will also be quite reasonable. It does not make sense for investors to sell assets at prices "at an all-time low," it is better to wait.

On the whole, any activity, both consumer and market, poses losses. It is true that our banking system was criticized for excessive involvement of the state, but when 9 out of 10 largest banks are state-owned, this makes it more stable amid crisis. The only correct behavior is to calm down and watch the news.

If you have a foreign currency deposit, let it be there. Especially since there's definitely almost zero interest rates. This is a completely wrong tactics to move now to foreign currency, try to withdraw dollars and euros from accounts or ATMs. I do not expect the government to take any confiscatory measures," the expert said.