The ruble is worth more than it seems

Finansy07-02-2008 ruble is worth more than it seems our domestic currency is undervalued twice! And, if aggressively to strengthen the ruble, we can reduce the issue of inflation, say some experts. However, other experts note that such proposals "smack" 1997. Then, too, sought to strengthen the ruble against the dollar, which led to default a year later. In January 2008, inflation was 2.3%, exceeding by 0.6% same period last year. Overall in 2007, inflation reached 11.9% mark. In the pre-crisis 1997, it was lower - 11,5%. Masses recalled in 1998 and began to whisper about the denomination. The Government is still trying to convince that will keep inflation under 7,5-8,5%. However, that nobody believes. Economic experts believe that this year we will see inflation at around at least a 12% reduction in the rate of inflation can contribute to aggressive appreciation of the ruble, I'm sure Julia Tseplyaeva, chief economist at Merrill Lynch in Russia and CIS countries. In her opinion, the ruble - is one of the most undervalued currencies. "Appreciation of the ruble against the dollar by 3% will reduce inflation by one percentage point," - she said, stressing that it is virtually the only way to rapidly reduce inflation.