Putin instructed to take measures in connection with the strengthening of the ruble

Russia’s President Vladimir Putin drew attention to the risks of excessive strengthening of the ruble. “The ruble strengthened, despite the price volatility in commodity markets, and in this regard, we certainly need to think about how and what we will do in the near future in connection with these factors,” the President said today at the meeting with Prime Minister Dmitry Medvedev.

Six months later, after the ruble fell to historically low levels (85 rubles per $1), the rhetoric of the authorities is changing in the opposite direction. Yesterday Putin at a meeting with business Ombudsman Boris Titov has noticed that the tendency to growth of rouble “someone happy, someone not very”, and urged to find a balance between the interests of businesses that benefit from a weaker and a stronger national currency.

In recent months, the ruble is “rid” the world price of oil and rises in price even when oil is cheaper. That is why Brent crude from the beginning of June fell by about 6%, in ruble equivalent (the indicator of oil and gas revenues) by 11%, with approximately 3350 RUB. per barrel, to 2970. (Bloomberg data).

“The government is now beginning active work on the budget, we return to a three-year planning, I hope that all of these factors will be taken into account at short and medium term”, — said Vladimir Putin.

In April Finance Minister Anton Siluanov said that the new budget rule, over which the government now operates, is designed to prevent excessive strengthening of the ruble and in General to isolate the course from the volatility of oil prices.

Previously, the Ministry reported that in the second half of the strengthening of the ruble will continue because of the global situation and interest to the Russian currency. The current forecast average annual exchange rate was on the level of 67.2 rubles per dollar. However, at the end of the first quarter the average rate stood at 74.7 rubles per dollar, the second — 65,9 RUB “Thus, in the second half of 2016 will continue the strengthening of the ruble,” — said the Ministry. The position of the Russian currency has affected the outcome of the referendum on the British exit from the European Union, according to the Ministry. In addition, global stock markets have started to invest in riskier assets, including in the ruble that has led to the strengthening of the exchange rate, added the MAYOR. Now the ruble gets further support from factor tax payments (during this period, the demand for the ruble traditionally increased).