Russia: Ruble’s Exchange Rate Has Stabilized

Russian President Vladimir Putin said on Monday, during a meeting on economic issues, that the Russian economy has begun to recover its steady, as the ruble's exchange rate is recovering its levels by early February.

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"Russia has withstood this unprecedented pressure. The situation is stabilizing; the ruble’s exchange rate has returned to the levels of the first half of February and is being defined by the objectively strong payment balance," said Putin. The President described the Q1 (first quarter of the current year) as a period in which the Russian economy is "hitting a fresh all-time high," given that the surplus of the existing account of the balance of payments in Russia exceeded $58 billion.

He added that the foreign exchange cash is returning to the country’s banks and the accounts of citizens are growing. "I will separately note the inflation issue. It is stabilizing now," said Putin, adding that "consumer prices grew notably over the last 1.5 months - by 9.4 percent, while in annual terms as of April 8 inflation amounted to 17.5 percent." The Russian leader highlighted the need that the main objective of the country's authorities is Russia’s long-term financial stability both at the federal and regional levels.

The President said that "additional decisions are required here, and it is necessary to implement them right at the moment when the economy needs it most of all," adding that "the long-term stability of financial system both at the federal and regional level remains a key condition."

According to the President's statements during the summit, Russian authorities need to ensure national demands, such as improving the availability of loans for the business.

"It is critical to support the internal demand at present, avoid its superfluous contraction," he said. "Actions should be taken down the line of the budgetary system and by supporting greater availability of credit resources for the business."

"The Central Bank has already initiated the reduction of the key rate, which will certainly make credits in the economy cheaper," he said, referring to the sphere of operations of the Central Bank.