"Staring down the barrel of the slowing economy and falling tax revenue, Finance Minister Anton Siluanov on Tuesday rejected proposals to lay responsibility for growth on the Central Bank and offered his way out of the government's predicament — devalue the ruble.
Siluanov's ministry will use oil revenue destined for the Reserve Fund to buy currency on the market and weaken the ruble by 1 to 2 rubles ($0.03 to $0.06), he told Bloomberg.
Insisting that strictly "market mechanisms, rather than administrative methods," would be used, he said the measure would make exports more competitive, while a 1 ruble drop in the exchange rate could bring an additional 190 billion rubles ($6 billion) into the budget. The scheme may be launched as early as August."
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