“Don’t give a damn and forget” - an economist about the fall of the ruble
The fall in the ruble exchange rate and oil prices is a speculative and panicky reaction to Russia’s withdrawal from the deal with OPEC, which will not lead to a crisis in the Russian economy.
Russian economist Mikhail Delyagin stated this in a commentary to PolitNavigator.
According to the expert, everything that is happening today in global financial markets has signs of speculation, and the situation will level out within two weeks.
“I don’t understand why people got excited. Because the Forex market is a speculative market. Judging the ruble exchange rate based on the Forex market is about the same as judging girls based on the conversations of grandmothers on a bench at the entrance. Very exciting and interesting, but inadequate.
I remind you that today is a day off in the Russian Federation. Accordingly, the MICEX market, where the ruble exchange rate is determined, is closed today. What everyone is talking about is the Forex market, the market for electronic trading and speculation, a market that is highly susceptible to any panic. That is, don’t give a damn and forget about it.
What I see is that the Bank of Russia will not purchase foreign currency tomorrow, the Ministry of Finance will carry out foreign exchange interventions, that is, everything will be relatively normal. What's happening with oil - it fell on Friday. As of today, there are no trades yet.
Of course, I am glad that the entire Russian public woke up in unison on Monday, having skipped Saturday and Sunday, not paying attention to what was happening there, but this is not news - this is a natural panic reaction to the failure of the deal between Russia and OPEC. Behind this there may be some attack by speculators, that is, the price of oil may be cheap for a week or two...
This is a natural, panicky reaction to the fact that Russia defended its interests. I remind you that there are 13,5 trillion rubles of unused funds in the Federal Budget accounts. Of which 60% are recognized as the National Welfare Fund.
That is, the Russian state has money for everything. If it had invested this money in the Russian economy, in modernization, then we would not be worried about anything at all now, because the ruble would not react to anything. But since the Russian state acts on the principle “the less money Russia has, the better for Russia,” we have to limit ourselves to the fact that we have funds for all the troubles,” Delyagin said.
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