The ruble has a great potential for strengthening even with the declining oil prices, but this can happen provided that there are no new negative external factors, Russian Central Bank chief Elvira Nabiullina said.
Under the pressure of speculators and declining oil prices, the Central Bank recently accelerated the planned transition to the ruble's floating exchange rate from an exchange rate policy it applied before.
"Certainly, market players should adapt to the new regulations, and these are truly new regulations. And, in our view, these major fluctuations will be gradually subsiding. Plus, the situation was affected by the fact that there had been quite a feverish demand, a speculative demand, in the previous days. We took measures to knock it down. And, in our view, as concerns objective factors, there are objective factors that determine the ruble exchange rate, and it is undervalued now. Therefore, if there are no new negative external factors, the ruble has a great potential for strengthening," Nabiullina said in a Saturday analytical program hosted by Sergei Brilyov on the Rossiya-1 television channel.
"Even with the current low oil price and with the other objective economic indicators that are in place now, in our view, the ruble is undervalued, and it has the potential for strengthening," she added.
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