The Russian officials see no risk in the ruble’s decline. Thus, the Economic Development Ministry unveiled its forecast where it said that the dollar/ruble exchange rate will average 65.4 rubles in September, 64.5 rubles in October and 63.9 rubles in November-December. Interestingly, the ministry’s position seems contrast with that of the government.
“In August 2018, the Russian ruble continued to weaken amid the new wave of capital outflow from emerging markets and worsening economic situation in Turkey as well as the potential introduction of additional US sanctions against Russia,” it said. Meanwhile, the president and the government earlier said that the sanctions would only be good for the domestic economy.
Still, it is not clear how the weaker ruble can be of benefit to the Russian people, which cannot be said about national companies exporting oil and gas in US dollars.
