As rouble falls past 100 per U.S. dollar, Kremlin blames loose monetary policy
2023.08.14 03:04
© Reuters. FILE PHOTO: Sheets of the newly designed Russian 100-rouble banknotes are seen at the Goznak printing factory in Moscow, Russia July 6, 2022. Moscow News Agency/Handout via REUTERS
MOSCOW (Reuters) -The rouble fell past 100 per U.S. dollar on Monday just as President Vladimir Putin’s economic advisor said Russia was interested in a strong rouble and said that loose monetary policy was the main reason behind the Russian currency’s weakening.
The rouble fell to 100.35 roubles against the U.S. dollar in early trade.
“The current exchange rate has deviated significantly from fundamental levels, and its normalization is expected in the near future,” Putin’s economic advisor Maxim Oreshkin told TASS news agency.
“A weak rouble complicates the economy’s structural transformation and negatively affects the population’s real incomes,” he said. “It is in the interests of the Russian economy to have a strong rouble.”
The Bank of Russia has blamed the rouble’s sharp slide this year – it has lost around 30% against the dollar – on Russia’s shrinking balance of trade. The country’s current account surplus was down 85% year-on-year in January-July.
