Volatility in ruble exchange rate should ease as it adjusts to new conditions, infrastructure - Yudaeva

ST. PETERSBURG. July 1 (Interfax) - The ruble exchange rate is currently more volatile because it is adjusting to the new infrastructure, and the situation should normalize as the process completes, Ksenia Yudaeva, advisor to the Russian Central Bank governor, said.

"Regarding the exchange rate, there are naturally factors of fairly high forex earnings that are currently being sold, perhaps reducing demand for imports," Yudaeva said when explaining the noticeable strengthening of the ruble exchange rate.

"The rate is currently slightly more volatile, as it is adjusting to the new infrastructure, to the new fragmentation that has occurred on the market. Accordingly, the rate is adjusting to this. It could be more volatile. I think that the situation should normalize over time, and that the rate should become less volatile again, as we saw with the changes in the market structure at the beginning of 2022," Yudaeva told journalists as part of the Summer Macroeconomic School.

Yudaeva said that it was not possible to predict how long the adjustment would require. "It should require some time. I do not think that it could take years, and I do not think it could even take very many quarters," she said.