Reply #36: Russian Finance Minister opposes strengthening the ruble [View All]

[54anickel]

http://en.rian.ru/business/20050804/41090954.html

MOSCOW, August 4 (RIA Novosti) - Russia must not permit the strengthening of the ruble, Russian Finance Minister Alexei Kudrin said Thursday at a cabinet session.

The use of the Stabilization Fund finances as well as the reduction of inflow to the fund from oil export sales could result in an additional strengthening of the national currency to the detriment of national industries, Kudrin said.

The Russian Stabilization Fund was formed on January 1, 2004. The fund receives money from oil export sales when oil prices exceed $20 per barrel.

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Kudrin said the predicted increase of Russian gold and currency reserves for 2005 was $50 billion. However, the reserves would probably increase by $80 billion, the minister said.

"The growth of the gold and currency reserves will happen due to the increase of oil prices and the attempts of the Central Bank of Russia to restrain the strengthening of ruble," he said.

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