the Advantage of floating exchange rate is that it balances the interests of all participants of the economy and reflects the current situation on the market. Such opinion at press conference expressed the Chairman of the Bank of Russia Elvira Nabiullina.
She admitted that over the course of the national currency — its “strengthening, weakening, its effects on the economy” — is still under debate. “Often, exporters say that the strengthening of the ruble lowers their export opportunities. Importers, including those who are interested in the purchase of foreign equipment say otherwise. Depending on the debt situation of certain enterprises see advantages or disadvantages in a particular movement”, — quotes RIA “news” the head of the Central Bank.
However, in her view, “that is a benefit to the market, a floating exchange rate, which balances the interests of all participants of the economy and reflects the current situation and external conditions”.
we also Recall that the Russian national currency in March of this year has significantly depreciated against the dollar and the Euro. Strong pressure on the rouble had a General panic in the financial markets due to the rapid spread of the pandemic coronavirus infection COVID-19 and concerns about its impact on the global economy, and a collapse in oil prices.
So, the strong devaluation of the Russian currency occurred on March 7 on the international Forex market, after the day before the deal collapsed OPEC+, — countries of the Alliance are unable to agree on cutting oil production, nor of the extension of the deal for a longer period (1 April 2020). Then, on March 9, 2020, the financial and oil markets suffered “black Monday”, and on 18 March, the market embraced a “black Wednesday” with yet another collapse of oil prices, the Russian national currency in the course of trading on the Moscow stock exchange has updated (at the time) a record against the dollar and the eVRO February 2016, 81 and 88 million, respectively.
we Add that the real effective exchange rate of the ruble (inflation-adjusted) in may 2020 rose by 3.8% against foreign currencies relative to the previous month. In this case the real rate of the ruble against the dollar rose during this period by 4.7%, to Euro — on 3,8%. However, for the first 5 months of the current year the real effective exchange rate of the ruble fell by 7.8%, and the dollar — by 9.9%, and the Euro by 9.7%.
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