Some of the stupid hypocrisy that surrounds the world of central banking is breaking down. Is strong currency good for you? NO .
The Russian ruble has depreciated by 20% since the beginning of the year. After a sharp devaluation which peaked in March, the Russian currency had recovered, but apart from the summer it started to lose ground again, returning to close to 80 rubles per dollar.
Do you think Putin and the government are crying? Absolutely not. On Wednesday, Russian Industry and Trade Minister Denis Manturov said that companies that don't rely heavily on imports " are in a good position right now ". It also defined the write-down as "Exceptional". The speech is very simple: Russia exports oil and does not import energy, so there is no danger of importing inflation. At the same time, the 20% devaluation means that products manufactured in Russia will cost 20% less than imported ones. This will give a nice boost to the companies of this country and to the internal industrial production, which, in fact, has already started to rebound:
This is why Confindustria in Italy is in complete bad faith and defends not the interests of national producers, but of income earners: if it really had an interest in the industry, it would ask, especially in these times, for a devaluation to relaunch national production. However, since they have now delocalized China Etc to Vietnam, they have no interest in currency policy, on the contrary they oppose it because it would make their choice to produce abroad less convenient. In the same way a minister who sits at the MISE should behave. But we are not in Russia here, unfortunately …
The article THE RUBLE CRACKS AND THE RUSSIAN MINISTER CELEBRATES comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-rublo-crolla-ed-il-ministro-russo-celebra/ on Sun, 18 Oct 2020 20:31:07 +0000.