The Russian government is going to prevent the rouble from strengthening too much in the next few years

Thursday, August 22, 2019

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"We will be trying to ensure that the real effective exchange rate of the rouble does not grow more than 4-6 per cent a year," Deputy Prime Minister Alexander Zhukov said on Wednesday, addressing an international conference on investment issues. He stressed once more that the government expects in the near future internal factors to contribute more to economic growth. In particular, the vice-premier said, next year is expected to see a 10 per cent growth in investments in the Russian economy, and a faster growth of population incomes of 9 per cent. Zhukov pointed out that in September of this year the population's cash incomes grew by almost 10 per cent, compared with the September of last year, and investments in basic capital increased by almost 12 per cent. "Over the past five years Russia has covered a fairly long road from political instability, a grave financial crisis, and a default on our liabilities, to high and steady rates of economic growth," Zhukov said. He said that "today nobody doubts Russia's ability to fulfil its liabilities," as is evidenced by the rise in the country's credit rating, growth of investment, and the fact that the value of gold and hard currency reserves overshot the $100 billion mark the other day. Many of these results have been achieved by Russia thanks to a stringent financial and budgetary policy, a well-balanced macro-economic policy, and the simultaneous reduction of taxes, the vice-premier noted. At the same time, he stated, "business conditions in the world have played and continue to play a big role" in Russia's economic advances, above all high prices for raw materials exported by Russia

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