Macro advisory in moscow. He said the situation for the russian currency is unique. You should not be looking at it in the same way as if there was a slide in a normally functioning economy or a european economy. The rouble is entirely managed now by the central bank in conjunction with the Finance Ministry, and has been since we last saw the rouble collapse down to about 130 in march of last year. So the Central Banks priority last year was to keep the Rouble Exchange rate high at around 60, because it was tackling inflation, but this year, because of the sanctions impact and because that has led to a big hit on the value of russias oil exports in particular, they have devalued the rouble in order to compensate for that fall in dollar terms. In other words, weaker rouble translating dollars into a higher rouble amount to balance the budget. Thats been the priority this year. It doesnt reflect an imminent crisis. Sort of a broad collapse in the economy. Its the result of the central Ba
A broad collapse in the economy, it is the result of the central bank managing the rouble. arguably they have gone too far the other side. the economic adviser is at loggerheads with the central bank, he is blaming loose or soft policy stop what does he mean by that? this stop what does he mean by that? sis you stop what does he mean by that? s you say, stop what does he mean by that? sis you say, he is complaining that the rouble is now too weak, and i guess he is indirectly criticising the central bank s actions with the finance ministry, essentially saying that they have mismanaged the conversion of export receipts since june, when this latest decline in the rouble started. but in terms of loose policy, we haven t seen much of an increase in say consumer lending, there is no real issue there, there is no big surge in any sort of investment or consumer activity, so i think what he is
Too far on the other side. well, maxim 0reshkin is the economic adviser, and he s sort of at loggerheads, isn t he, with the russian central bank? he s blaming loose or soft policy. what exactly does he mean by that? yeah. as you say, he has been complaining that the rouble is now too weak. and i guess he s indirectly criticising the central bank s actions with the finance ministry, essentially saying that they have mismanaged the conversion of export receipts sincejune when this latest decline of the rouble started. but, you know, in terms of loose policy, we haven t seen much of an increase in consumer lending. there s no real issue there. there s no big surge in any sort of investment or consumer activity. so i think what he s actually saying is that the central bank and the finance ministry are mismanaging this balance and they need to bring the rouble higher, because of the risk of inflation or the risk of a loss of confidence, which then could have broader economic implications i