MOSCOW, November 28 (RIA Novosti) – Russia’s Economy Ministry said Thursday that the ruble could depreciate further in 2013, weakening the currency to levels not seen for more than four years.
The slide has come despite high oil prices and the ongoing tax collection period, which would normally be expected to increase demand for the domestic currency as businesses pay off their dues to the state.
Economy Minister Aleksei Ulyukayev admitted there was a small chance the ruble’s fall could gather pace, the Prime news agency reported.
The ruble has this week risen 1.4 percent against the euro-dollar basket, the currency benchmark used by the Bank of Russia.
Russia is moving toward a free-floating ruble as part of a shift in monetary policy priorities. The Bank of Russia has widened the corridor in which it sells or buys currency six times this month.
Bank of Russia deputy chairman Ksenia Yudaeva said Thursday that the ruble’s decline has been caused by external factors. But some analysts have linked the fall to a growing lack of trust in Russia’s banking system.
As part of its campaign against shadow banking, the regulator revoked the license of mid-sized Master Bank last week, causing widespread problems with card payment transactions.
