To prove the point, he quoted Central Bank forecasts of the effective real rouble rates. "The rouble will get fixed at a certain level," he remarked to comment the current US dollar fall vs. the rouble and other moneys. A quick rouble rise is not so good as it may seem-it may make the national economy less competitive, warned the minister. But then, Russian inflation would be too rapid, if not for the rise, he added.
The year's inflation will somewhat outrun its expected rates, expects the Central Bank. Mr. Kudrin thinks its experts are right here.
Russia still has a chance to keep inflation within a blueprinted 10 per cent ceiling-but the Central Bank is close to the truth in its forecasts, however, he went on. After all, the bank is better informed, so he relies on its prognostication.
The year's inflation will be at 10.5 per cent, Alexei Ulyukayev, Central Bank vice-president, said on a previous occasion.
Mr. Kudrin thinks Russians will be wise if they keep their roubles deposited in banks for the next half-year. Many banks offer government deposit guarantees-the Central Bank recently announced a list of seventy.
"The Central Bank has mentioned an initial seventy truly reliable banks. The list will be enlarged quite soon, and it is more lucrative to keep one's roubles there, I am sure," he remarked.
It is unwise to spend Stabilisation Fund money on the domestic market-it threatens to boost the inflation, what with Russia's close dependence on petroleum exports, warned the Finance Minister. He called to follow the Norwegian and Kazakh practice. "With today's high petroleum prices, extra interest-free expenditures usually send inflation up, even if these are domestic capital investments," Kudrin stressed.
He finds it reasonable to spend a part of Stabilisation Fund accumulations on foreign debts payments-again, as Norway and Kazakhstan are doing.
Russia's Fiscal Service will be established quite soon after long work. To determine law enforcement agencies' responsibilities to taxpayers remains one of the top national priorities. "We don't want to make honest taxpayers carry the burden which tax-dodgers are evading. That's the main point," said the minister.
"To come at the best way to call tax-evaders to account will be the new Fiscal Service's central target," added Alexei Kudrin.
