What far can the ruble fall?

What far can the ruble fall?

Today a euro reached 73 rubles for the first time in six months at the Moscow Stock Exchange. The ruble has increased its fall due to the negative dynamics of oil prices and fears of an autumn growth in demand for the currency. The official dollar exchange rate of the Bank of Russia for tomorrow is 65.82 rubles. The official euro exchange rate increased to 72.91 rubles. 

Oil prices are lowering due to excess fuel in the market. October futures for Brent fell in price by $0.21 (0.43%) to $48.53 per barrel. 

The Russian economy can withstand very severe fluctuations in oil prices, the head of the Ministry of Economic Development Alexey Ulyukayev said. 

"Russia's economy is highly adaptive to oil prices. In terms of the budget, the ruble floats freely and creates the ideal margin. The price of a barrel of oil in rubles is always 3.3-3.4 thousand whatever the oil price. Rubles. In this sense, the budget is guaranteed. In addition, many companies have learned to hedge currency risks and reduce costs. Therefore, I believe that the Russian economy can withstand very severe fluctuations in oil prices,’’ the minister said, explaining that the exchange rate depends on the currency basket. "If the euro falls against the dollar, the whole basket sags, and the ruble exchange rate against the dollar may fall. This is simple arithmetic," Ulyukayev said.

Today Russian President Vladimir Putin said that he discussed the current economic situation with the Prime Minister of the Russian Federation Dmitry Medvedev, noting that the Cabinet pays special attention to these issues, including the exchange rate of the ruble. 

"I know that the government pays the utmost attention and attaches importance to this. We have just discussed this situation with Dmitry Medvedev. We are engaged in this every day," he said.

Earlier, the President noted the contribution of the Central Bank to the strengthening of the Russian currency. "The Central Bank is doing a lot in order to strengthen the national currency and make it more stable, as well our financial system could become more stable in general,’’ Elvira Nabiullina, the head of the Central Bank, said at the meeting.