In the short term, it is logical to expect increased fluctuations in the ruble exchange rate following the new US anti-Russian sanctions. Nikita Kulagin, head of Sovcombank’s macroeconomic analysis department, told socialbites.ca.
“We can expect the volatility of the ruble to increase. On the one hand, we can expect a repeat of the situation this year (especially in the spring and summer), when importers have difficulties in foreign trade payments. As a result, demand for the currency may be lower in the coming months, which will be positive for the ruble. On the other hand, problems may also arise for the exporter. In August-September this year, some companies were faced with the fact that they could not quickly receive income from foreign banks for their goods. The situation may repeat or even worsen after the new sanctions package. “As a result, exporters may sell smaller amounts of currency, which will be negative for the ruble,” he said.
He admitted that it would be more difficult for Russians to make payments abroad. However, Kulagin added that the public still has the opportunity to make transactions through banks that are not subject to sanctions.
The economist also explained how the Russians can reduce sanctions risks.
First of all, in the current environment, diversification is needed more than ever. According to Kulagin, if there is a desire or need to store funds in foreign currency, it is better to do this in different instruments and in different banks/management companies. The expert explained that in this case, the risk of new sanctions causing the person to be unable to manage some of his assets is reduced.
Secondly, it is now better to give preference to investments in assets located in Russia. This eliminates infrastructure risk as well as the need to use international payment systems or foreign brokers, the economist said. The expert concluded that current market rates make ruble assets (including deposits, bonds, OFZs) quite attractive.
Earlier, economist Tatyana Podolskaya explained how the Russians could do this. to lose Money when investing in dollars.
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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.