Ruble has hit bottom, forex surplus expected on market in coming months - Kremlin aide

VLADIVOSTOK. Sept 11 (Interfax) - The ruble's depreciation has passed its nadir and a surplus of foreign currency is expected to form on the market in the next few months as a result of a whole range of factors, Kremlin aide Maxim Oreshkin told Interfax on the sidelines of the Eastern Economic Forum (EEF).

"The market has passed peak values," Oreshkin said when asked about the ruble's current exchange rate and its correlation with its fundamental value.

"Larger amounts of forex revenue from higher prices for export commodities will come onto the market in the next few months, which given the declining amounts of imports of goods and services, as well as the effects from the key rate increase and tightening of macroprudential policy will generate a surplus of forex on the market," Oreshkin said when asked about expectations for the situation on the forex market.

The Central Bank of Russia (CBR) hiked its key rate by 350 basis points to 12% at an extraordinary board meeting on August 15. CBR deputy governor Alexei Zabotkin said on September 5 that pro-inflationary risks remain considerable and the CBR does not rule out another rate hike at its board meeting on September 15.

"Pro-inflationary risks remain significant. We will revise our forecast and the updated forecast will be published as part of a press release after the September 15 meeting. The decision will be based on this forecast," Zabotkin, adding that "we do not rule out a possible increase [of the key rate on September 15]."

The CBR is also tightening macroprudential regulation in order to cool the consumer lending market and help curb inflation.