Ruble strengthens: The Russian ruble was trying to strengthen to the next level but it had lasted not for long. During last days of the year the government and the central bank are strongly trying to correct the statistics and close the year with slight growth. All necessary measures have been taken, for example, the rates were increased more than three times, foreign exchange reserves were spent, even large export companies were ordered to sell the U.S. dollars and euros to full the local foreign exchange market with foreign currencies. However, all efforts have been wasted. Despite the fact that the U.S. dollar and the euro slightly weakened their growth on the Moscow currency exchange, and the ruble strengthened against the currency basket, this stabilization was very short-lived. The MICEX, the main index of Russia, fell by 2.4 percent to 1,398.85 points, while the RTS index dropped by 46 percent. The ruble bonds have lost 52 percent this year, it is the highest drop among 30 emerging markets. Russias economy is forecasted to ease by 4.7 percent next year, if the oil price holds at $60 per barrel within the stress scenario project. Net capital outflow could reach $134 billion this year, which is two times more than in the past year, and it could be unchanged since 2008. The work of the central bank is seriously complicated by imposed sanctions. Russian companies have limited access to Western capital markets.The material has been provided by portal MT5 - mt5
Posted on: Mon, 05 Jan 2015 19:53:50 +0000
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