Expert comments on dollar rate - 23 August, 2002

Even having no supernatural abilities one can predict that the dollarexchange rate should not change considerably in the near future and thecurrent situation on the currency market will retain until the end of themonth at least. Analyzing the currency trade's dynamics one can point outthat the trade has been calm, there are some fluctuations within a sidewaystrend, which is limited by the RUR31.55 and RUR31.60 levels, an expert of acommercial bank said in an interview with RBC commenting this morning'strade at the unified trading system. The growth in the rate on MICEX and onthe interbank currency market depends on currency interventions of theCentral Bank at the 31.60 RUR/USD level. However there is a possibility tobreak through this level, as current credit rates are about three to fourpercent, and operators consider the 31.56-31.59 RUR/USD rates as apossibility to buy cheap currency before the rate starts going up. In otherwords, the main factors that determine the tendency on the currency marketare the Central Bank's position and the volume of ruble resources that canbe used by the market's participants to support their liquidity or to buycurrency. A further trend on the market depends on these two factors. Itseems that the Central Bank will continue preventing the advance in thedollar exchange rate and buying currency to increase its gold and currencyreserves. .