According to the Head of State, there are high chances that the Central Bank will be able to maintain the stable exchange rate further
The Pridnestrovie’s President Evgeny Shevchuk commented on the exchange rate during the live program of Radio-1. He emphasized that they had to make a choice based on the economic conditions, i.e. to liberalize the ruble or to support its exchange rate.
According to the President, it would be possible to provide all social obligations entirely even in the case of ruble devaluation, but at the same time it would affect the real income of the population negatively.
“It is clear that when the ruble is devaluates, the purchasing power decreases also. Besides, if there is devaluation, it is difficult to hold the inflation,” Evgeny Shevchuk stated.
The President emphasized that stable Pridnestrovie’s ruble was a significant achievement of 2014.
“The Central Bank has implemented a tougher policy, and also we have managed to reduce the expenses and to use the accessible resources. Meanwhile, the estimates show that we will be able to maintain the stable exchange rate further,” the Head of State told.
The President affirmed that there was the USD cash deficiency at the end of the last year. It was caused by the foreign trade decrease, the devaluation of the Russian ruble resulting in the money transmissions reduction from the Pridnestrovie’s citizens in the Russian Federation. There are also other factors.
“It is difficult to deliver large amount of cash if there are no official agreements with the banks of the other countries. There was the USD cash deficiency at the end of the last year. The situation normalizes gradually, and we expect that it will be stabilized in February, 2015 completely,” the President concluded.
