International foreign exchange markets will remain strongly volatile in the next few years, Russian Economic Development Minister Elvira Nabiullina said on Thursday.
"In the next few years we'll see sharp fluctuations on forex markets," Nabiullina said at a press conference devoted to the St. Petersburg international economic forum to be held in Russia's second largest city on June 17-19.
The single European currency has been battered in the past few days over concerns that Greece's debt crisis may spread to other Eurozone countries, despite a large bailout package agreed by major European economies and the IMF for the Hellenic state.
On Thursday, the euro is trading at 1.23 to the U.S. dollar, and registered a four-year low of 1.21 to the greenback on Wednesday.
"The strength of each currency is, in the final account, determined by the strength and competitiveness of a particular economy," Nabiullina said.
Presidential economic aide Arkady Dvorkovich said at the same time that the euro/dollar exchange rate will depend on the efforts by the European Union and the United States to balance their budgets.
So far, the euro depreciation is benefiting the eurozone countries oriented to exports. "For them, this is an advantage in the current situation," Dvorkovich said.
The Kremlin expert said he expected the European economy to demonstrate almost zero growth rates in coming months or years but said he was confident that Europe will cope with the problems and the euro would survive.
"The euro is experiencing an uneasy period. But I believe that the euro will survive and Europe, with the assistance of other key countries, including Russia, will resolve the problems that have emerged," Dvorkovich said.
The Kremlin economic aide said this issue would be discussed at the St. Petersburg economic forum and at the G20 summit of developed and major emerging economies in Canada.
MOSCOW, May 20 (RIA Novosti)
