Russia would welcome weaker rouble

Jun 19th, 2013 | By | Category: Central Bank

Russia would welcome a weakening of the rouble, medicine so long as the drop in the exchange rate is market driven.

This is the view expressed by the country's Finance Minister Anton Siluanov in discussions with Reuters.

He added that the drop in the currency value would help to boost the competitiveness of Russia's export market, as well as boosting revenues.

"The Finance Ministry would accept a certain weakening of the rouble's exchange, but only as long as it is driven by the market and not by administrative methods," he clarified.

The Ministry is due to introduce a new mechanism to manage windfall oil revenues later this year, but this is expected to be neutral for the market. However, some weakening of the rouble would provide a healthy boost to the slowing economy.

The comments come after Siluanov and the Ministry rejected the proposal to put some of the responsibility for economic expansion on the Central Bank or to use a weaker rouble to salvage growth. In an interview in Moscow he remarked: "The Finance Ministry didn't support that proposal because it's without substance and blurs the lines of responsibility for economic growth between the Government and the central bank."

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