They feel all: the expert explained why the fall of the ruble of the Russian Federation is so politically important
According to him, the difference between 50 rubles for a dollar in 2022 and 100 today can be observed by every citizen of Russia "when the central bank raises the interest rate, it also beats Russian borrowers, firms and households with outstanding loans. It will slow down the Russian economy and Therefore, it will undermine the growth of real income and purchasing power of Russian citizens, ”he said.
According to him, the new devaluation marks the reality, creating a reality when Russia no longer exports a lot and imports very little. He added that the western boycott of most Russian oil began to be felt only at the beginning of this year.
Guryev said that a recent rebellion against the military leadership of Russia by the head of mercenaries of PEC "Wagner" Yevgeny Prigogin, as well as the expropriation of Western companies that still work in Russia, also contributed to the outflow of capital and weakening of the ruble. However, Guryev also stated that he did not consider recent events critically dangerous to the Russian economy.
"I think it is normal that the Russian central bank remains favorable to its target inflation and increases interest rates when sees that inflation is out of control. On the other hand, the question is how possible a further decline in the course if The Western coalition will be able to increase the sanction pressure on the Russian economy, "he said.
Sergiy Alexashenko, former Deputy Minister of Finance of Russia, told reporters that the devaluation of the ruble was caused by increasing distrust of the economic policy of President of the Russian Federation Vladimir Putin and the future of the country. Recall that Russian media reported that in Moscow they decided to save ruble with the help of billionaires.