… Called the ruble is too strong

The rouble remains stronger than it should be based on fundamental values, says the head of the Ministry Maxim Oreshkin. When the ruble may come into line with fundamental factors, the Minister said, noting that it will depend on the balance of payments.

“Inflation is now below our expectations for a number of reasons, including the fact that the exchange rate is below our expectations. The course has deviated from fundamental values, this deviation remains,” — noted. (quoted by “Interfax”).

In mid-February, after the dollar fell to a year low in 56,55 RUB, the Minister of economic development expressed confidence that the ruble will soon begin to weaken.

“We believe that strengthening [of the ruble], which we see in the market is short-term and not related to fundamental factors. In General, we expect that in the near future there will be some weakening of the ruble, and then its stabilization,” said Oreshkin February 17, after the President of Russia meeting with the Ministers.

Against this background, statements of the dollar on the same day rose to RUB of 58.55, and in early March its rate rose above 59 rubles. However, inflation in February 2017 fell to a historic low for this month (0.2%). The Central Bank, responding to a query , called inflation “very low”, referring to the number of reasons of its decline and the strengthening of the ruble.

In conversation with journalists on March 14. noted the need to understand what the Central Bank is not so much inflation this year as “the situation with inflation expectations and expectations of long-term dynamics of inflation.”

“If for the current year we are going better than expected, regarding the long-term history, it is still not yet solved,” said Oreshkin, commenting on their expectations is scheduled for March 24 meeting of the Board of Directors of the Central Bank, which can be made the decision to change the level of interest rates.

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During today’s trading on the Moscow stock exchange rate of the dollar against the ruble hovering around 59 rubles., remaining above the level of the close of trading on March 13. The Euro on Tuesday reached to the maximum level 62,825 RUB.