Former Putin’s adviser accused Central Bank of the ruble collapse

The collapse of the ruble in March occurred due to the regulator’s failure to fulfill its constitutional obligation to support the national currency, said Sergei Glazyev, Minister for Integration and Macroeconomics of the Eurasian Economic Commission, Forbes reports. According to him, the government could stabilize the currency at any level.

Currency crash after the fall in oil prices can be explained by the speculators’ activity in the market: in the absence of enhanced control from the Central Bank, fraudsters use exchange robots that form a speculative shaft. The most common trigger for such devices is the low cost of oil. After the scenario is executed, the robots use algorithms to launch the pattern of the previous devaluation. Glazyev is confident that with sufficient control, the ruble could withstand even with the low cost of raw materials. It is worth noting that in Saudi Arabia, for example, the rial remained at the same level.

The expert also added that such volatility could lead to tragic consequences. He cited deficit as an example. During this period, the government is trying to cope with it, however, the reason for its occurrence was not the coronavirus, but the collapse of the ruble. Citizens fear that goods will rise in price the next day.

The economist from 2012 to 2019 was the personal adviser to President Vladimir Putin. His name is associated with the loudest and most decisive proposals. For example, Glazyev advised not to return money to the United States, to refuse dollars, and also to “freeze” the value of the national currency. In addition, the expert often criticized the Central Bank for carrying out too tough monetary policy. As a result, he was dismissed, after which he took a position in the ECE.