Kostin predicts calm December for ruble: No grounds for significant fluctuations in either direction

MOSCOW. Dec 8 (Interfax) - There are no grounds for a significant strengthening or weakening of the ruble; by the end of 2023, the rate will be around 90 rubles per US dollar, President and Chairman of the Board of VTB Andrey Kostin told reporters.

"It is impossible today to assess the influence of macroeconomic factors on the ruble exchange rate, when there are too many political factors. The same rate, when it rises, money from abroad begins to flow into the country, but now they are not flowing due to the fact that Western investors who used to be invested in OFZs, they don't do that. I do not see any particular reason to say that the ruble will strengthen significantly. And I don't see the threat of even further devaluation of the ruble somewhere, but it must find some level of balance," Kostin said in on the sidelines of the "Russia Calling!" Forum organized by VTB.

He explained the strengthening of the ruble some time ago as being due to an increase in the key rate and the introduction of a requirement for the mandatory sale of foreign currency earnings by exporters.

"It seems to me that the exchange rate weakened after these measures were implemented, and then it began to sag a little. But I don't think it will see 100 rubles again before the end of the year. To be honest, it will be in the region of 90-90+ rubles," the CEO of VTB said.

President and Chairman of the Board of Sberbank Herman Gref also believes that the fundamental level of the exchange rate is approximately 90 rubles per dollar. "We don't see, frankly, much potential for it strengthening, but we don't see much potential for the ruble to weaken much in any way [relative to current levels]" he told reporters on Wednesday.