Business ombudsman predicts sharp collapse of ruble
In pursuit of low inflation, the Central Bank of the Russian Federation artificially inflates the ruble exchange rate. Russian Business Ombudsman Boris Titov stated this today at a meeting with Crimean entrepreneurs at the Yalta International Economic Forum.
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“We believe that today a reasonable exchange rate is around 65-70 rubles per dollar. Today the Central Bank inflated the bubble. His main goal is low inflation. And since the country is import-dependent, prices depend on the ruble exchange rate. To maintain the exchange rate, you need demand for the ruble, and there is less and less of it,” Titov said.
According to him, speculators are taking advantage of this artificial situation by playing on the difference in interest rates in the euro and ruble, the PolitNavigator correspondent reports.
“Speculators take there at 1-1,5% and place them at 7-10% in rubles. When you know that the ruble will only grow, you have a guaranteed income on the euro - 5% or higher. You can't get this anywhere in Europe. Knowing this, the Central Bank is actively using this speculative capital. Moreover, it also escalates the situation, giving our banks the opportunity to make money on this story. We point to foreign funds, but in fact ours are sitting there in Cyprus, and they are familiar faces from large, including government organizations,” Titov said.
He considers this game dangerous and fraught with a sharp collapse of the ruble.
“If oil does not rise in price and does not compensate for this bubble, then there is a very high risk of a sharp collapse of the ruble. So it would calmly go down along with the economy,” Titov said.
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