Logo
  Monday, June 1, 2020
Sign-In  |  Sign-Up  |  Contact Us  |  Bookmark 

Yesterday the Central Bank of Russia reported the euro had increased its share in the currency basket from 10% to 20%.
The dollar retained 80% of the basket. Market operators had long expected such measures from the financial authorities and even hoped that the euro's share would be increased at least to 30%. The point is that the exchange rates of both currencies are important for Russia as Europe accounts for about a half of the country's trade turnover, Noviye Izvestia reports. Alexander Potavin, the head of analysis with NetTrader.ru, says the dollar is still more important for the country than the euro. "The main currency flow into Russia is in dollars," the expert explains, "because all prices in international contracts and oil deliveries are quoted in US dollars." He added that after the bi-currency basket was introduced, foreign exchange rates started to be pegged to the dollar less. Analysts believe that the transition to the ruble's quotations using the currency basket will enable the Central Bank to calculate the exchange rate of the effective national currency with new methods. This means that the ruble will continue to strengthen, but the financial authorities will be able to manipulate final statistical indices by changing the dollar/euro percentage proportion in the basket. This is very important, particularly given that the Central Bank faces an unrealistic task: to keep inflation within 10% and prevent the ruble from appreciating beyond 26 rubles to the dollar by the end of the year. However, experts believe the exchange rate based on the currency basket takes into account the dollar and euro fluctuations on the international markets, but is completely isolated from the events in Russia. "There could be some internal changes in the Russian economy that will support the dollar, but such factors will be ignored," says Elena Matrosova, the director of the Unikon Center for Macro-Economic Studies. In the opinion of experts, the dollar will come close to the level of 25.5 rubles to the dollar by the end of the year. This is the only way to keep inflation at the level of 8.5%-10% targeted by authorities
Print Yesterday the Central Bank of Russia reported the euro had increased its share in the currency basket from 10% to 20%. Bookmark Yesterday the Central Bank of Russia reported the euro had increased its share in the currency basket from 10% to 20%.

Related News   
FebMarch 2005Apr
MoTuWeThFrSaSu
28123456
78910111213
14151617181920
21222324252627
28293031123
45678910