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Russia's Sberbank CEO sees fair rouble exchange rate at 98-105 per dollar
Russia's Sberbank CEO sees fair rouble exchange rate at 98-105 per dollar
About this update from Sberbank
Sberbank Chief Executive German Gref said on Wednesday that a fair exchange rate for the Russian rouble is in the range of 98 to 105 roubles to the U.S. dollar, compared with the current market exchange rate of 78.5.Gref, speaking at a conference in Moscow, said that such a rate would suit Russian exporters whose profits have been hit this year by the strong rouble. The rouble is up by more than 30% against the dollar so far in 2025, although it had rallied by more than 40% earlier in the year. "This is the exchange rate that should be in place should the market normalise," Gref said.The rouble's strengthening has been driven by high interest rates, which make rouble assets attractive, as well as by market expectations of a settlement to end the war in Ukraine. Many analysts have been predicting for months that the rouble should start to weaken but it has remained strong, also supported by shrinking imports.The rouble showed no significant reaction to new U.S. sanctions against Russia's largest oil producers, Rosneft RUS:ROSN and Lukoil RUS:LKOH, which together account for up to 35% of the country's foreign currency markets. Analysts now expect the rouble to start weakening in December when inflows of foreign currency are set to decrease due to sanctions. An expected reduction in the central bank's forex sales from January 1, 2026, will also put downward pressure on the Russian currency.