The Russian ruble rose against the US dollar, reaching its highest level since July 2015, and continued to rise, which may increase the Russian central bank’s concerns about weakening Russia’s export competitiveness.
Russia’s currency rose 1.7 percent to 55.44 rubles, up about 35 percent since the beginning of the year.
Despite the reduction of 1050 basis points (equivalent to 10.5%) interest rates by the Central Bank of Russia since the beginning of the crisis in Ukraine, the currency gained.
In turn, Russian Deputy Prime Minister Andrei Blosov stressed that the exchange rate of the ruble at ideal levels is important for the Russian economy.
He noted that officials, including the government and the Central Bank of Russia, are discussing the issue of moving towards targeting the ruble instead of inflation.
On the sidelines of the St. Petersburg International Economic Forum, the Russian official said that the optimal Russian exchange rate for the Russian economy is in the range of 70 to 80 rubles, so it is necessary to return to this level as soon as possible. as much as possible.
The dollar index, which measures its value against a basket of six currencies including the euro and the yen, reportedly fell 0.25 percent to 104.44 yen, but near its highest level in 20 years (105.79). Was registered on Wednesday. The day the Federal Reserve raised interest rates to curb inflation by 75 basis points.
Source: Lebanon Debate
