Klepach Says Ruble May Hit 23 to Dollar If Oil Stays High

By Alex Anishyuk The St. Petersburg Times MOSCOW — The ruble could surge back to its 2008 highs next year, reaching 23 against the dollar, if oil prices remain high and there is an influx of foreign investment, Deputy Economic Development Minister Andrei Klepach said Wednesday. But the comments from the ministry’s top forecaster were more of a warning than a prediction. The stronger currency could keep economic growth anemic and threaten the budget with bigger deficits, as exporters’ commodities become more expensive on the global market and taxes paid from their foreign-currency revenue are worth less in ruble terms. The ruble “may be 26 rubles per dollar, or even 23 or 24, if oil prices are above $80 and there’s a high influx of capital into the country,” Klepach told reporters at a UBS investment forum. But he said he... [read full story]                    

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