Aksakov In Reversal On Ruble

The ruble is likely to strengthen in the medium term because of higher commodity prices, Anatoly Aksakov, a bank lobbyist known for sending the euro down earlier this year, said Tuesday.
The comments mark a sharp turnaround for Aksakov, a State Duma deputy who earlier this month proposed a 30 percent to 40 percent devaluation of the ruble, incurring the wrath of top officials of the ruling United Russia party.
“The global environment favors Russia’s economy, oil prices remain high, so now all the conditions are present for the ruble to strengthen,” Aksakov told a news conference.
He said the main issue for the Central Bank now would be how to withstand future ruble appreciation. Aksakov’s calls for a devaluation earlier this month weighed on the currency.
In February, Aksakov’s proposal for Russian debt restructuring prompted a sell-off in the euro, which fell more than 1 percent versus the dollar. He later backtracked on those comments.
The politician, who heads the Association of Regional Banks, one of the two major banking lobby groups in Russia, is now facing expulsion from the National Banking Council, which supervises the Central Bank.
“I have been appealing for a weak ruble during at least the last five years. I do not know why the reaction was so sharp now,” Aksakov said.