Ruble is most stable among emerging market currencies
Russian Central bank's first deputy chairperson Ksenia Yudayeva said that the Russian currency market demonstrated the most calm reaction compared to all others emerging markets.
"There was a rather strong movement yesterday on the developing markets," he noted at the forum. "But the ruble was the least affected by the movement," TASS cited Yudayeva as saying.
Russian Central bank's first deputy chairperson noted that "some events happened in Turkey yesterday that could have an impact on the general mood." But the Russian market demonstrated the most calm reaction compared to all others," Yudayeva concluded.
Professor of the RANEPA faculty of Finance, Money Circulation and Credit, Yuri Yudenkov, speaking to Vestnik Kavkaza, noted that this is only related to external stability associated with the low activity of the Russian financial market. "In fact, we have not been particularly active now. Payments for our supplies to Southeast Asia and Venezuela are blocked by U.S. banks," the economist stressed.
"In general, while U.S. sanctions are in force and there is a threat of blocking our banks' accounts in U.S. banks, it’s impossible to talk about the foreign exchange market's stability. Our country is still being paid in dollars, we cannot receive dollars for energy supplies to Southeast Asia, the Americans are blocking settlements. A similar example is blocking Visa at Eurofinance bank a week ago. Therefore, the foreign exchange market is calm, but it is not a thing to rejoice at," Yuri Yudenkov stressed.
The professor at the department of the stock market and investments at the Higher School of Economics, Alexander Abramov, didn't agree with Yudenkov. "Unlike many emerging markets, Russia is characterized by a more or less high level of financial stability due to significant gold and foreign exchange reserves, budget surplus and a positive trade balance," he said.
"In this regard, there are all opportunities to maintain the stability of the foreign exchange market in the future. But in the medium term, much will depend on how much Russia succeeds in solving the problem of economic growth. Strengthening economic growth will require a looser monetary policy, which would pose a certain risk for the exchange rate. Nevertheless, I think that there are no longer any serious challenges, in particular, sanctions, which would seriously threaten the ruble," Alexander Abramov concluded.