Ruble's Balance Discussed by Gref
Sberbank CEO touts undervalued ruble, calls for stronger currency 🤝 Invest 📊 SBER: 312.21 -0.08%
Sberbank CEO Herman Gref has weighed in on the ruble's value, asserting that it's underplayed against the US dollar, with an ideal rate of "100 plus." During a Sber business breakfast at the St. Petersburg International Economic Forum, Gref pointed out that the current exchange rate of around 78-79 rubles per dollar negatively impacts export industries and the national budget, causing deficits and forcing the Ministry of Finance to seek new funding sources by year-end.
Gref's stance follows VTB President-Chairman Andrei Kostin's assertion that the current ruble strengthening is detrimental to the Russian economy. Kostin advocates for a course around "90 plus" dollars. Meanwhile, First Deputy Prime Minister Denis Manturov and CEO Gref concur that an optimal exchange rate for both exporters and importers lies at around 100 rubles per dollar.
Ruble's Strength Fueled by Economic Demand 💼 rbc.group
Ministry of Economic Development Head Maxim Reshetnikov has attributed the ruble's strength to insufficient demand in the economy despite intervention by the Bank of Russia. The ministry had anticipated an average annual dollar exchange rate of about 94.3 rubles in 2025 but now projects it to reach around 98.7 rubles by year-end. The Central Bank, however, has emphasized that it prioritizes the Russian economy's interest over the ruble rate, relying on the floating exchange rate regime to mitigate imbalances.
Ruble Outperforms Gold, Safer Bet for 2025 📈 Bloomberg
Bloomberg estimates the ruble as the best currency of 2025, outshining gold in terms of yield. The agency calculates that the ruble has grown by 38% against the dollar on the over-the-counter market in the first four months of 2025, while the popular protective asset, gold, has risen by 23%. Additionally, the ruble has shown the most considerable growth against the dollar compared to other global currencies, signifying its strong performance this year.
In essence, a robust Russian economy appears to be the cornerstone of a "fairly strong" ruble, with consensus among experts advocating for an exchange rate between the mid-80s and low-90s rubles per US dollar range to balance economic stability and competitiveness. The current market trend aligns with this outlook, underpinning the favorable view of rates around 80-100 rubles per dollar for the Russian economy's optimal growth.
[1] Russian Economic Development Ministry Forecast[3] Bloomberg - Ruble outperforms gold in yield in 2025[5] Reuters - Russian ruble outpaces global currencies in 2025
Sberbank CEO, Herman Gref, indicated the need for a stronger ruble to alleviate negative impacts on export industries and the national budget, suggesting an ideal rate of "100 plus." In light of the ongoing discussion about the optimal exchange rate for the Russian economy, finance experts are currently favoring rates around 80-100 rubles per US dollar for optimal growth in business.
