The Russian ruble continued to gain momentum against both the euro and the US dollar, as markets anticipate a major cascade of tax payments from companies this week.
The ruble on Tuesday rose over 0.90% from the previous day’s trading session to around 74.25 per US dollar, the highest in five months. Likewise, the ruble jumped by more than 0.95% against the euro to approximately 79.62— the highest in almost two years.
The latest rally comes as traders prepare for companies to make a record 3 trillion ruble ($40.25 billion) tax payment before the end of the week. Analysts cited by RT News anticipate the incoming tax payment will support Russia’s currency even higher, given that some export-focused companies will be forced to sell foreign currency to make their payment.
At the same time, markets are also expecting the Bank of Russia to deliver a rate decision come Friday. The country’s benchmark rate was increased to 20% in March in an effort to mitigate the effects of Western sanctions imposed in retaliation to Moscow’s military operation in Ukraine. However, at the beginning of April, Russia’s central bank slashed the key rate to 17% in response to a stabilization of the country’s economy, and some are now forecasting an additional rate decline to 15% at the end of the week.
Information for this briefing was found via RT News. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
2 Responses
Western media servicing NATO interests have rapidly written piles of doom and gloom reports about the collapse of the ruble. Now they are mostly passing over the counter trend – mum is the word. Russian Central Bank rate was lowered from 20% to 17%, and soon another rate cut will take place. The demand for the ruble is rising due to ruble use for natural gas payments, and its growing use in oil, coal, metals, wheat, and fertilizer exports. What will the advisers write for Biden now to read from the teleprompter? Obama already declared Russian economy “in tatters” in 2014, yet sanctions did not work back then and are not working today. Moreover, most of the world has refused to follow the West. Countries like China, India, Brazil, Turkey, Iran, Mexico, SE Asia and the rest have refused to join. That makes “the whole World” a narrow group indeed.
Western media servicing NATO interests have rapidly written piles of doom and gloom reports about the collapse of the ruble. Now they are mostly passing over the counter trend – mum is the word. Russian Central Bank rate was lowered from 20% to 17%, and soon another rate cut will take place. The demand for the ruble is rising due to ruble use for natural gas payments, and its growing use in oil, coal, metals, wheat, and fertilizer exports. What will the advisers write for Biden now to read from the teleprompter? Obama already declared Russian economy “in tatters” in 2014, yet sanctions did not work back then and are not working today. Moreover, most of the world has refused to follow the West. Countries like China, India, Brazil, Turkey, Iran, Mexico, SE Asia and the rest have refused to join. That makes “the whole World” a narrow group indeed.