Fundamental and current factors creating preconditions for ruble to strengthen in upcoming months - Kremlin presidential aide

VLADIVOSTOK. Sept 12 (Interfax) - Fundamental factors, the current balance of payments, and good budget forecasts are creating preconditions for the ruble to strengthen in the upcoming months, Kremlin presidential aide Maxim Oreshkin said on Tuesday during a session at the Eastern Economic Forum.

"Fundamental factors, the balance of payments, strong budget execution, very good budget forecasts, and decelerating lending are all creating preconditions for a stronger ruble in the upcoming months," Oreshkin said regarding the matter of the ruble's prospects.

As reported, during a conversation with Interfax the previous day, Oreshkin said that, "The market has passed its peak values", when commenting on the situation on the forex market.

"The market will receive higher volumes of foreign exchange earnings from increased prices for exported goods in the upcoming months. This will create a surplus of currency on the market when accounting for the declining volumes of imports of goods and services, as well as the effects of hiking the key rate and tightening macro-prudential policy," Oreshkin said when explaining his expectations for an increase in the supply of currency on the market.

Oreshkin also noted that the budget deficit would not exceed the forecast of 2% of GDP in 2023, and it could even be lower, and a budget surplus is possible under certain scenarios in 2024.

"The situation with budget revenues is developing at the upper range of expectations. At the end of the year, the budget will have a deficit of 2% of GDP or less, which is better than the parameters set for the year. The dynamics of non-oil and gas revenues have demonstrated the most positive results," Oreshkin said.

"The cabinet of ministers has done a very serious job of balancing the budget for the next three years. The figures of the budget balance will be significantly better than expected. Under certain scenarios, next year's budget could be executed at a surplus," Oreshkin believes.