According to Interfax article published on April 12, 2023, the ruble is currently below its fair value, but this is normal for a floating exchange rate, while it was overbought last year, Deputy Russian Finance Minister Vladimir Kolychev told reporters.
He did not say when the ruble might return to its fundamental values as too many factors affect the exchange rate's formation.
"By our estimates, the fair value is stronger than the current one, which can be seen on the market. But it is absolutely normal for a floating rate to deviate from fundamental levels either way. Last year we observed a deviation in the other direction, now this," Kolychev said.
"How long it might takerule and fiscal policy," he said.
He said the fiscal rule, reconfigured this year, lowers exchange rate volatility, and this mechanism works equally in both directions.
"When the fiscal rule is activated, the impact of, these it can be related to anything: capital flows, other exports, imports...," Kolychev said.
