16 Jun 2022 19:45

Russia's Economic Development Ministry to revise outlook for ruble exchange rate toward greater strengthening - Reshetnikov

ST. PETERSBURG. June 16 (Interfax) - Russia's Economic Development Ministry by the end of June will prepare an interim version of the macroeconomic forecast until 2025, Economic Development Minister Maxim Reshetnikov told reporters on the sidelines of the St. Petersburg International Economic Forum (SPIEF) 2022.

According to Reshetnikov, the ministry will specifically revise the outlook for the ruble exchange rate toward greater strengthening.

"Obviously, we will have to revise the forecast further at the end of June, and it will not be an official forecast yet, though we will understand that we are running out [in terms of budget revenues]," Reshetnikov said.

"The key topic for both us and the Finance Ministry is the ruble exchange rate of course. Despite our having already strengthened to the pre-crisis level [in May's forecast version], the current structure will most likely require even more strengthening in the ruble forecast. We see that the strengthening will be considerably greater based on the balance of payments," Reshetnikov said.

According to Reshetnikov, the optimal exchange rate for the economy would be within the range of 70-80 rubles/$1, but "this is a dream thus far".

According to the Economic Development Ministry's outlook in May, the forecast for the average annual dollar exchange rate was 76.70 rubles/$1 in 2022, 77 rubles/$1 in 2023, 78.70 rubles/$1 in 2024, and 81 rubles/$1 in 2025.