Putin adviser offered to introduce currency restrictions to protect from chaos

The security of Russia’s financial market requires the entry of restrictions on the activities of exchange and currency speculators, I’m sure the Advisor of the RF President on economy Sergey Glazyev. Without such measures, according to him, control over the macroeconomic situation in the country cannot be recovered, since only one large foreign Bank can easily destabilize the situation in the market.

“Today the country’s growing macroeconomic chaos. The capacity of our financial system is extremely insignificant in relation to our partners around us. Say, one major U.S. Bank or hedge Fund could easily destabilize our financial market, unless we limit it from speculative attacks. Therefore, the introduction of selective exchange restrictions are also very important for macroeconomic stability,” – said Glazyev (quoted by TASS) at the meeting of the Open tribune in the Duma on “Russian economy: lessons from the crisis and priorities for development”.

Simultaneously, the adviser called to remove artificial constraints to the development of the real business. According to Glazyev, the stabilization of the ruble and the availability of cheap long-term loans would not only help to cope with the fall of GDP (in 2015, it declined by 3,7%), but also provided the economy to return to growth this year.

“Given the fact that capacity utilization today, on average 60%, we estimate the growth potential of the economy to 30%, not less, for the next 3-4 years. There is no problem from the point of view of resources – productive capacity, employment, growth of labour productivity, natural resources – in order to set the economy on a growth of at least 5-6% per year before the end of this year,” said Glazyev.

In January 2016, the adviser of the President has harshly criticized the Central Bank of the Russian Federation, which, according to Glazyev, was eliminated from the performance of their duties, which allowed speculators to manipulate to their advantage?

“Moscow exchange has become a primary profit center in the country, through which in the past year with operations in two times more than the GDP in the country is five times larger than the volume of exports or imports. This is despite the fact that economic activity in the country falls,” said Glazyev on the air RSN, adding that the exchange “money transfer banks, pulling them from the real sector, where the profitability of 5-7%”.

Earlier, the same source stated that the economy is “off the growth trajectory and fell into crisis” because of “egregious errors” of the Central Bank, and to start the “economic miracle”, it would suffice to conduct the issue, ensuring the flow of funds to the real sector of the economy.

“If printing money for speculators, which they throw on the foreign exchange market, then there will be inflation. If printing money for productive investment, inflation will not be. Take USA, EU. A giant issue when inflation is at zero. That is, if you follow the money destination, you give them as long as necessary for the development of production and investment without inflationary effect,” said the source.

In 2015, the presidential adviser declared that Russia’s GDP “objectively need” to grow not less than 7% per year, and industrial production — not less than 10%.