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Sberbank CEO Asserts Ruble’s ‘Unjustifiably Undervalued’ Status, Calls for Reassessment

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The Ruble’s Exchange Rate is Undervalued, Says Sberbank CEO


  • Sberbank CEO Herman Gref believes the Russian ruble should be trading at 80 to 85 rubles to the US dollar.
  • Currently, the ruble is trading around 96.5 to the dollar, having fallen nearly 30% this year.
  • Russian President Putin, however, has downplayed the currency’s weakness.

Sberbank CEO’s Perspective

Herman Gref, the CEO of Sberbank, expressed his belief that the ruble’s exchange rate is undervalued. He stated that a detailed analysis of the ruble’s fundamental value indicates that it should be trading at 80 to 85 rubles to the dollar.

Ruble’s Decline

The Russian currency has experienced a significant decline in value this year, reaching a 16-month low in August when it crossed the key barrier of 100 rubles to the US dollar. Currently, it is trading at 96.5 to one dollar.

Impact on Imports

The weakening of the ruble has made imports more expensive, which is a negative consequence of the currency’s decline.

Hopes for Recovery

Gref remains hopeful that the ruble will reverse its decline. He believes this can be achieved if the government takes appropriate steps to resolve the situation.

Putin’s Perspective

President Putin, on the other hand, downplayed the ruble’s weakness and expressed confidence in the country’s economy. He praised the central bank’s decision to raise interest rates in August to support the ruble.

Impact of Sanctions

Russia’s economy has been significantly impacted by Western sanctions, particularly since the invasion of Ukraine. The sanctions have fueled inflation, leading to an increase in the inflation forecast for the year.

High Inflation Rate

Putin acknowledged that Russia’s high inflation rate is causing difficulties for the country’s economy. He stated that it is practically impossible for companies to make business plans under these circumstances.


While Putin remains optimistic about the country’s economy, Sberbank CEO Herman Gref believes that the ruble’s exchange rate is undervalued. The future of the ruble and its impact on the Russian economy remains uncertain.

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