Authorities will not cancel free ruble conversion — Medvedev

The Russian ruble will remain a convertible currency, Russian Prime Minister Dmitry Medvedev said at the Gaidar Economic Forum in Moscow on Wednesday, adding that the Central Bank’s current policies were correct.

The Russian ruble will remain a convertible currency, Russian Prime Minister Dmitry Medvedev said at the Gaidar Economic Forum in Moscow on Wednesday, adding that the Central Bank’s current policies were correct.

“The authorities will not cancel the free conversion of the ruble,” he said. “True, it might be possible to freeze the exchange rate and thereby restore the black market of foreign currencies, to give currency to importers upon request depending on arbitrary decisions by this or that official or on friendly relations with them, but all that would mean systematic destruction of the market,” Medvedev said.

Medvedev acknowledged that “many factors, such as the oil prices and the sanctions, are working against the ruble.” The fluctuations of the ruble’s exchange rate were causing harm to companies, banks and ordinary people, he acknowledged.

“Nevertheless, I believe that the Central Bank’s policy at the moment is correct,” Medvedev said. “We are not going to squander the foreign exchange reserves. We have enough economic mechanisms to keep the ruble stable. Moreover, even in the context of an adverse environment we still have a balance of payments surplus, which is the chief fundamental factor for establishing a balanced exchange rate of the national currency,” the prime minister said.

First published by TASS.

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