The insufficient weakening of the ruble exchange rate is caused by a shortage of money in the domestic market, falling oil prices and difficulties in the flow of money from unfriendly countries to Russia. In this respect RIA News said investment strategist of Arikapital Management Company Sergei Suverov.
The shortage of foreign currency in Russia is due to the ban on fuel sales abroad: Petroleum products account for about 30% of the revenue of oil exporters. In addition, the expert noted that the North Sea benchmark for oil, Brent, fell from $95 per barrel to below $84.
Suverov said the ruble exchange rate was usually higher as oil prices were above $80 per barrel, but was now under pressure due to difficulties in receiving currency from unfriendly countries. He also added that last summer’s exchange rate of 50 rubles per dollar was a “distortion” due to the sharp restriction on capital flows and the collapse of imports. Suverov said that the Ministry of Finance and the Central Bank of the Russian Federation should combat volatility in the Russian market.
On Friday morning, the dollar exchange rate reached 101 rubles on the Moscow Stock Exchange for the first time since August 14, while the euro exceeded 106 rubles. As of 08:15, the dollar rose to 101.5 rubles and the euro rose to 106.9 rubles.
October 3, Mikhail Vasiliev, chief analyst of Sovcombank aforementioned socialbites.ca said that the ban on the export of gasoline and diesel fuel reduces foreign exchange earnings and the supply of foreign currency, which is a negative factor for the ruble exchange rate. On Friday the Russian government partially allowed Diesel exports from Russia.
Dzhioev, formerly an analyst guess Strengthening of the ruble exchange rate to ₽85 per dollar.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.