MICEX head Konstantin Korishchenko gave a positive assessment of the ruble’s future, adding his voice to a chorus of top officials who have spoken out against devaluation of the currency.
There is no doubt that the country’s economy is tied to oil and that the price of oil will rise in the near future, Korishchenko said in an interview on Business FM. The ruble will also remain strong because of coming weakness in the dollar and euro, he said.
“Simply put, I don’t see any other course except for the strengthening of the ruble in real terms because of a high level of inflation,” he said.
Last week, State Duma Deputy Anatoly Aksakov, a member of the Just Russia party, drew fire when he called for a 30 percent to 40 percent ruble devaluation to avoid tax increases in the face of a growing budget deficit.
Aksakov’s suggestion drew a harsh response from his fellow lawmakers. State Duma Speaker Boris Gryzlov on Friday said rumors of a coming devaluation were “groundless” and “an attempt to apply the recipes of 1998.
Other lawmakers were equally scathing in their responses, including State Duma Deputy Speaker Vyacheslav Volodin, who said Aksakov’s proposal was “against the people” and “asserted the interests of oligarchs and big business” by undermining the ruble.
Ruble devaluation is a touchy subject as United Russia and its rival, A Just Russia, jostle for position ahead of fall elections during, said Alexei Makarkin, head of the Center for Political Technologies. “Aksakov brought up a purely macroeconomic issue but with serious political implications,” he said. “Devaluation could be good for regional enterprises, who are clients of regional banks, but most of the population’s salaries and savings are in rubles.”
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