In Russia, there is a balance between the demand and supply of foreign currency, as evidenced by the current exchange rate of the ruble. This opinion was expressed by BCS World of Investments stock exchange expert Dmitry Babin in a conversation with socialbites.ca.
“This balance is also supported by the increase in world commodity prices in recent months. (On April 2, the barrel price of Brent oil exceeded $89 for the first time since October 30) . This will compensate for the decrease in the physical volume of Russian exports due to sanctions and geopolitics. “In addition, these factors, together with difficult monetary conditions, also reduce the demand for imports,” he said.
Babin added that if any of these factors weaken or strengthen, it could disrupt the balance of demand and supply for the currency. Also, the balance will depend on whether and in what form the compulsory sale of foreign currency earnings in the Russian Federation will be extended.
The ruble initially strengthened, with the euro even falling to a three-week low of just under 99 rubles due to weakness in the world market. However, at the beginning of the main session, the ruble fell sharply and again set the highest level of the day. True, this impulse did not develop: the Russian currency soon regained a significant part of its today’s losses. According to the Moscow Stock Exchange, the cost of the dollar at 17:15 Moscow time is 92.54 rubles, while the euro is 99.66 rubles.
Denis Buivolov, formerly an analyst explained “socialbites.ca” euro exchange rate falling below 99 rubles.