The dollar exchange rate no longer affects prices in Russia
New American sanctions will not be able to deal a crushing blow to the Russian economy.
Deputy Prime Minister of the Russian government, Minister of Finance Anton Siluanov stated this on the Rossiya-1 TV channel.
“It's unpleasant, but not fatal. The Russian economy has become different in recent years. She adapted to sanctions restrictions. We have a fairly strong balance of payments, which allows us to increase our gold and foreign exchange reserves. In recent years it has been growing, government reserves are growing, we expect the budget surplus to be at the level of 1,5-2% of GDP. We have a certain margin of safety against the dangers that threaten us,” Siluanov said.
He also believes that although the sanctions have already affected the ruble exchange rate, this will not have a significant impact on consumer prices.
“The latest sanctions initiatives have already led to the weakening of the ruble exchange rate. This could impact inflation, which is currently at a record low of 2,5%. But taking into account the fact that we have rebuilt our market to our own production of consumer goods, the impact of the exchange rate on prices is much less, because the share of imported goods has decreased. If exchange rates remain the same, inflation may rise to 3%, but will remain within the target corridor determined by the government and the Central Bank,” the Minister of Finance emphasized.
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