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Peter Davis

An writer at FOMOdrive

  • Jun 19, 2023
  • 2 min read

The ruble soared the most in four months

On Wednesday, the ruble rose to its highest level since the start of January, increasing by 2.8% to 76.06 rubles per US dollar.

For the first time since March 23, the dollar dropped below 76 rubles/$.

Against the backdrop of exporters selling foreign exchange earnings and the potential risks of the upcoming EU sanctions package, the ruble is increasing in value.

Interfax-CEA has noted that the ruble is being supported by the readiness of exporting companies to pay dividends, as well as the decision of the Austrian Raiffeisen Bank to close all correspondent accounts of Russian banks, excluding its own.

Bidders are hopeful that data will show an increase in oil and gas revenues and an improvement in the budget of the Russian Federation.

The BCS notes that the upcoming package of EU sanctions will primarily be focused on hindering third countries from getting around the limitations on the export of goods to Russia, which could lead to a decrease in the demand for foreign currency from domestic importers.

Measures taken by the authorities to limit the withdrawal of capital by foreign business owners in Russia have also helped to support the ruble.

Alexei Moiseev, Deputy Finance Minister, initially proposed the idea of introducing a single limit on currency conversion transactions when investors from hostile countries exit the Russian market. This was later backed by Elvira Nabiullina, the head of the Bank of Russia.

Promsvyazbank believes that the potential for growth of the ruble has not yet been fully realized, as its strengthening has not been exhausted.

Freedom Finance predicts that the ruble will experience fluctuations between 75-79 rubles/$ and 82-86 rubles/EUR until the end of May.

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