Expert called the ways to return dollar level to 85 rubles

Economist and Former Head of the Russian Ministry of Finance Mikhail Zadornov listed ways that will strengthen the ruble against the US dollar. In his column for RBC, the expert suggested reducing fiscal and monetary stimulus, which boosts demand for imports and weakens the Russian currency.

“We are talking about tightening fiscal and monetary policy simultaneously. The increase in the Central Bank rate is a step in this direction. The loose monetary policy encourages lending, stimulates demand, and weakens the ruble. The increase in the Central Bank rate does not affect the exchange rate, but indirectly increases deposit rates and stimulates savings against consumption,” Mikhail Zadornov explained.

Another method of influence, he called the control over the sale of foreign currency by exporters.

“Russia has long abandoned the mandatory repatriation of foreign exchange earnings, but reaching an agreement with the largest exporters and having appropriate guarantees is a solvable task. While the authorities are following this path, if the agreements do not work, the government and the Central Bank will have to introduce clear requirements. It is impossible in today's conditions to allow non-sale of foreign exchange earnings. The needs of exporters in foreign currency are several times less than their income,” said the financier.

Mikhail Zadornov considers restrictions on the movement of the capital account to be another effective tool. In his opinion, the government and the Central Bank should control the actual withdrawal of the currency through this channel - dividends and other income of non-residents, the sale of business by foreigners with the departure of cash.

“The relevant government subcommittee does not allow transactions over $1 billion per month, and this limit must be carefully enforced. Restrictions should apply only to enterprises - it is wrong to control the movement of capital from the population and migrants working in Russia. These are large flows, but these are people's lives. Among other measures is the development of infrastructure for direct and exchange settlements in friendly currencies,” the publication quotes the columnist.