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Dollar Rate is Expected to Fall in Second Half of 2009, Russian Expert

Business Materials 27 November 2008 17:34 (UTC +04:00)

Azerbaijan, Baku, November 27/ Trend corr I.Khalilova / "Presently, confidence in dollar has increased all over the world as confidence in US economy remains quite high," Sergey Dubinin, a member of Board of Directors of BTB Capital said in an interview with Expert Online.

"Huge volume of money supply in the USA (emission of money) should potentially result in reduction of dollar rate to other currencies - euro, yen, pound and splash of inflation in the USA in second six months of 2009. This is my opinion, many economists, vice versa, believe that US economy will face not inflation, but deflation, that is stagnation of an economic growth with a zero growth of prices," he said.

Floating rate of ruble depending on inflow and outflow of money in Russia is necessary, Dubinin said concerning dynamics of changes in rate of Russian ruble.

"It is impossible to encourage export with certainly reduced level of rate for a long time. If investors do not believe in high level of rate of ruble compared to dollar there will be no additional funds. However, gold and exchange currency reserves of Central Bank (CB) are quite enough to smooth splashes in a market and not to admit overshooting of prices," he said.

CB will be able to keep a ruble within limits of proclaimed corridor at 32-34 rubles on average for bi-currency basket in 2009, member of Board of Directors of BTB Capital said. Presently, it costs about 31 rubles.

The correspondent can be contacted at [email protected]

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