Koltso Urala: USD below 50 RUR not good for Russian Government

20 May 2015 (09:28)

May 20, 2015. A U.S. dollar selling for 50 RUR or more is a better scenario for the Russian Government, claims Bank Koltso Urala Foreign Exchange Transactions Director Igor Nesterovitch.

The analyst believes the reason for this is that a stronger ruble could result in reduced budget revenues.

According to Nesterovitch, oil prices and the U.S. Federal Reserve System’s dollar interest rate are going to be the crucial factors affecting the ruble/dollar exchange rate. In case the oil prices stop growing the way they did over the last months and the FRS takes certain steps, the demand for the U.S. dollars will keep growing both on the global and Russian markets.

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