Siluanov: We may buy $1 billion as ruble overvalued
The Russian Ministry of Finance sees an opportunity to purchase up to $1 billion this year for current budget expenditures and external debt obligations, as the domestic currency is fundamentally overvalued, by 10% to 12%, Minister Anton Siluanov said. Speaking to reporters in Baden-Baden on the sidelines of the meeting of the Group of 20, he revealed the assets in question would come on top of those intended for the Reserve Fund, TASS reported. Nevertheless, Siluanov added the government may decide not to take advantage of the situation.
Expectations for the overall harvest and oil prices, alongside the exchange rate, are pressing inflation lower from the current rate of 4.4% and it may weaken by 4% before the end of the year, he underscored. The minister said there would be no special measures to drive price growth below the level if such policy can't be sustained. The outlook for economic expansion in 2017 has been boosted from 0.6% to between 1.5% and 2%, Siluanov stated.
The dollar added 0.37% to buy 57.442 rubles and the euro rose 0.4% to 61.8155 (both 10:31 am CET).