Rouble set for solid and speedy strengthening

Jan 22nd, 2010 | By | Category: Rouble News

Investors have been uncertain about the long-term fate of the oil-driven rouble, viagra buy but the International Monetary Fund said today that the Russian currency is set to strengthen quickly and solidly.

At a government conference on economic modernisation, visit web the body's representatives claimed that "real appreciation puts strong emphasis on structural reforms".

Russia's central bank has been allowing for increasing fluctuation in the rouble's exchange rate, indicating the transition to a float in the coming years, although the currency still trades in a tight range against a dollar-euro basket.

The regulator was urged by Fitch ratings agency today to take the recession as its cue to bring down high inflation – "a long-standing ratings weakness" – and move towards a more flexible exchange rate regime.

However analysts have noted that, as long as oil prices remain high, there will be continued pressure on the rouble to appreciate.

Earlier this week, it was suggested that plans for a free float of the rouble are likely to be delayed after Russian policy-makers claimed the country's economy is not prepared for unrestricted currency trading. According to Citigroup Inc economists, the central bank will delay the free float beyond the official target of 2011.

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