Currency expert labels existing dollar as "distorted"
"#Doubts on Dollar Rate Common!"
"There's gotta be something fishy going on with that dollar rate, man," blurted out Michael Beliaev. "The current dollar rate, yeah, it's got nothing to do with what's happening in our national economy."
According to Beliaev, the dollar rate shouldn't climb "one single ruble a day." He pointed his finger at speculators and the Central Bank itself as the culprits manipulating the currency's price. His theory suggests the real dollar rate hovers between 90 and 93 rubles.
On April 23, the Central Bank established the official dollar rate at 81.46 rubles, and the euro at 94.04 rubles. Compared to April 22, the rates bumped up by 0.7 rubles and 0.37 rubles, respectively.
Following the imposition of sanctions against the Moscow Exchange in June 2024, the platform suspended trading in dollars and euros. As a result, the Central Bank had to depend on the results of over-the-counter deals between banks settled by 15:30 Moscow time to determine the official rates of the dollar and euro.
Since the suspension of trading in dollars on the Moscow Exchange due to sanctions, the Central Bank of Russia has taken a series of steps to determine the official dollar rate:
- Fixed Exchange Rates: Before the sanctions were announced, the Central Bank had fixed the exchange rate at 89 rubles to the dollar to stabilize the market.
- Regulated Currency Transactions: The Central Bank allowed companies and individuals to buy and sell dollars through Russian banks, ensuring stability in the domestic currency market.
- Sterilization of Excess Revenue: The Central Bank has been buying dollars in the domestic market to manage excess revenue and prevent the ruble from appreciating too quickly.
- Monetary Policy Tools: The Central Bank has maintained high interest rates to control inflation and stabilize the financial system.
With all these measures in place, the Central Bank is managing the official dollar rate under the constraints imposed by the sanctions. Keep an eye on our Telegram channel @expert_mag for more financial updates.
- In light of the sanctions against the Moscow Exchange, the Central Bank has been determining the official dollar rate based on the results of over-the-counter deals between banks settled by 15:30 Moscow time.
- Despite the increased dollar rate following the sanctions, speculators and the Central Bank itself are said to be the culprits manipulating the currency's price.
- The real dollar rate, according to some, hovers between 90 and 93 rubles, a stark contrast to the official rate of 81.46 rubles established by the Central Bank on April 23.
- With fixed exchange rates, regulated currency transactions, sterilization of excess revenue, and monetary policy tools, the Central Bank of Russia is managing the official dollar rate under the constraints imposed by the sanctions.
