15 Oct 2020 13:20

Ruble rate still 'over-weakened' due to psychological factors, investor fears over virus, sanctions - Reshetnikov

MOSCOW. Oct 15 (Interfax) - The ruble exchange rate is still "over-weakened," which is linked not to economic but to psychological factors: investor fears over development of the pandemic situation and possible sanctions, Russia Economic Development Minister Maxim Reshetnikov said.

"The situation in financial markets remains extremely volatile. We see weakening of the ruble and reduction of stock indices. In mid-October, stabilization was noted on the foreign exchange market; however, according to our estimates, the ruble rate still exceeds fundamentally justified levels, it is still over-weakened," Reshetnikov said during a meeting of the State Duma Committee on Budget and Taxes.

"This situation, from our point of view, is due not to economic but rather to psychological factors and in general investors' fears, and this includes issues, of course, of the sickness rate both in Russia and the world, the situation in neighboring countries, discussion of possible sanctions - all possible ones arising periodically - etc. Basically, the rate is under pressure," he said.