![]() ![]() On March 7, it hit a record low of 150 per dollar. However, as the rouble has recovered, the price gap between the markets has shrunk.Īccording to Refinitiv data, the offshore rouble this week was quoted as strong as 75 per dollar, , around where it traded on the eve of the invasion that Russia terms a "special military operation". JPMorgan said this week that Western banks had scaled back trading and credit lines to Russian entities, creating "a friction between offshore and onshore trading". Since the war started, the rouble has split into an onshore market for local institutions, and an offshore one for Western banks and investors to trade with each other and entities not subject to sanctions. "Market forces cannot drive the rouble in the way they can the euro or dollar," he added, noting that while Russian demand for foreign exchange was falling, speculators who use currencies to bet on a country were now absent. "This (rouble recovery) shouldn't be taken to be the market's view on the medium to longer-term outlook for Russia," said Ulrich Leuchtmann, an analyst at Commerzbank. The currency is also being artificially inflated by capital controls and, with the country's gross domestic product predicted to shrink 10%-15% this year, Russians are quickly getting poorer as soaring inflation devours their earnings. ![]() 24 invasion - is partly down to a genuine improvement in Russian finances as energy export revenues grow and imports shrivel.īut using it as evidence that Russia's sanctions-savaged economy is out of the woods would be at best misleading. The dramatic rebound - the currency nearly halved in value in seven trading sessions following the Feb. LONDON, April 1 (Reuters) - The rouble has staged a lightening-fast recovery to levels last reached in the days before Russia invaded Ukraine, defying predictions that the war would launch it into freefall. ![]()
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