Recently, Russians’ interest in buying cash dollars has been declining. Why this is happening was explained on Wednesday, December 15, by the head of the Center for Investment Analysis and Macroeconomic Research of the CSR Daniil Nametkin.
According to the expert, earlier during the period of price surges, the rush demand for currency was an attempt to save savings.
“The waves of panic buying in dollars were indeed largely associated with a period of high volatility in the Russian foreign exchange market. So, for example, it was in 2014-2016, when, as a result of geopolitical factors and a collapse in the commodity market, our country faced more than two-fold devaluation of the ruble, “- quotes his words to the Prime agency.
As the specialist noted, in recent years, the sensitivity of the ruble exchange rate to changes in the situation on the world oil market has weakened. For example, over the past year, oil prices have increased by 1.5 times, while the ruble’s position has remained virtually unchanged.
However, it is impossible to say that the demand for the currency is becoming a thing of the past, since the US dollar remains the main world reserve currency, and amid growing economic uncertainty, it serves as a tool for diversifying investment portfolios.
In September-October this year, the ruble became the leader in strengthening against the dollar among the currencies of emerging market countries (EMEs). Such data are presented in the latest review of the financial stability of the Central Bank.
The repeated increase in the key rate by the Central Bank and the rise in commodity prices allowed the ruble to add 3.7% to the dollar. As the Central Bank noted, the ruble’s gains were the result of rising energy prices. Experts interviewed by Izvestia also named the increase in the Central Bank’s key rate (since March of this year from 4.25% to 7.5% per annum) and small volumes of purchases of dollars for reserves as reasons for the strengthening of the Russian currency.
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
