- Sputnik International
Russia
The latest news and stories from Russia. Stay tuned for updates and breaking news on defense, politics, economy and more.

Russian Ruble US-China 'Trade-War Refuge' for Global Investors in 2019, Media Says

© AFP 2022 / ALEXANDER NEMENOVA Russian ruble coin is pictured in front of the Kremlin in in central Moscow, on November 6, 2014
A Russian ruble coin is pictured in front of the Kremlin in in central Moscow, on November 6, 2014 - Sputnik International
Subscribe
International
India
The Russian currency was far from being a "refuge" for investors just years ago, after the country's economy was hard hit, simultaneously, by a drop in oil prices and the imposition of foreign economic sanctions in 2014.

The Russian ruble has become one of the most profitable currencies for investors around the world; Bloomberg reported citing opinions provided by numerous strategists and traders. 

Namely, it became the most lucrative currency for carry-traders, those who borrow cash in countries with low-interest rates and then convert it to the currency of another country with higher interest rates or more profitable investment prospects. Bloomberg research shows that ruble brought up to 72.9% returns to those who invested in it since the end of 2014, twice as much as the second-best currency for carry-trade, the Egyptian pound.

© Sputnik / Vladimir Trefilov / Go to the photo bankBanknotes and coins of the United States
Russian Ruble US-China 'Trade-War Refuge' for Global Investors in 2019, Media Says - Sputnik International
Banknotes and coins of the United States

The ruble has also become a "refuge" for those fleeing the uncertainties of the US-China trade war. The news agency indicated that the Russian currency owes its current status not only to relatively high interest rates but also to its strength ensured by the government's policy of accumulating "windfall oil revenues" as national reserves and its GDP growth rates, which reached a new maximum since 2010.

Hugh Grant presents the award for outstanding performance by an ensemble in a drama series at the 25th annual Screen Actors Guild Awards  - Sputnik International
Viral
Russians Actually? Hugh Grant Suggests Boris Johnson’s Viral Parody Clip Was Paid For With Rubles

These changes came after the ruble suffered a significant shock and fell in value in 2014 on the back of oil price declines and the introduction of foreign sanctions against Moscow. Since then, the currency has gradually been regaining ground, becoming stronger and gaining 7.32% in value compared to the dollar in spot prices and nearly 10% in futures contracts in 2019 alone. 

Analysts at HSBC Holdings Plc, cited by Bloomberg, believe that the ruble growth trend will continue in 2020 and will gain 7% against current levels, although it won't go as high as in 2019. 

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала