A return to the old exchange rate regimes could constitute an option for the Russian government – Commerzbank

The comments by the first Vice Prime Minister of the Russian government, Andrey Belousov, on the ruble are very interesting. The government is considering a return to an exchange rate target and seems to plan to abandon the free float, economists at Commerzbank report.

A USD/RUB exchange rate of 70-80 would be ideal

“Apparently, a USD/RUB exchange rate of 70-80 would be ideal, and Russia should return to this range as quickly as possible, according to Belousov.”

“I don’t particularly want to go on about my view on the government’s considerations. Above all, I want to point out that a return to the old exchange rate regimes could possibly constitute an option for the government and might lead to the corresponding fluctuations in the ruble exchange rates if they were to become a reality.”