The Russian government artificially lowers the dollar exchange rate
The dollar exchange rate in Russia is artificially lowered by the government, which purchases currencies with all additional revenues from the sale of oil and gas. If not for this, the dollar would have cost not 63,5, but 50 rubles, a PolitNavigator correspondent reports.
Finance Minister Anton Siluanov stated this today, speaking at the Federation Council of the Russian Federation.
If there were no budget rules, the dollar would now cost 50 rubles, said Anton Siluanov.
“Of course, the ruble would be stronger. But if the price of oil fell, we would have a reverse swing. Such volatility, such unpredictability, of course, hits entrepreneurs. The main task is not so much to create reserves, which is also very important, but to ensure predictability in business activities from exchange rate fluctuations,” Siluanov said.
According to the budget rule, the Ministry of Finance directs all additional oil and gas revenues received when the oil price is above $40 per barrel to purchase foreign currency, which is then credited to the National Welfare Fund.
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