There are no prerequisites for the ruble’s devaluation this year, despite record capital outflows last year and political uncertainty ahead of the March presidential election in the country, Sberbank chief German Gref said on Wednesday.
“We don’t believe that there are any serious prerequisites for the currency devaluation. World oil prices remain high. If capital outflow shrinks compared with last year, this will help the ruble strengthen. We don’t expect any considerable volatility in the currency (the ruble),” the head of Russia’s largest bank said at an economic forum in Moscow.
Russia suffered net capital outflows of over $84 billion in 2011, more than twice the $33.6 billion, which left the country in 2010, when Russia recovered from the global credit crisis.
Gref said that the federal budget deficit was still a big problem for the country.
“But with oil prices at the levels we see today the situation is within permissible parameters,” Gref said.
Russia’s budget deficit is set at 1.5 percent of gross domestic product in 2012, 1.6 percent of GDP in 2013 and 0.7 percent of GDP in 2014.
International ratings agency Fitch on Monday downgraded its outlook on Russia’s credit ratings to stable from positive over increased political uncertainty in Russia.
"Political uncertainty in Russia has risen and the global economic outlook has worsened since Fitch last affirmed the rating in September 2011," said Charles Seville, director of Fitch's Sovereign group.
The agency affirmed Russia’s short-term IDR at 'F3' and Country Ceiling at BBB+.
Although incumbent Prime Minister Vladimir Putin is still the strong favorite to win presidential elections on March 4, it is unclear how the country's leadership will respond to the unexpected wave of protests over the alleged vote fraud, the agency said.
