Listen Live
    Russian Central Bank

    International Investors Restore Confidence in Russian Economy

    © Sputnik / Ruslan Krivobok
    Business
    Get short URL
    0 113

    Two years after oil prices tumbled and Western sanctions against Russia were imposed the Russian economy is once again attractive to investors, an article in The Wall Street Journal read.

    On Tuesday, the Russian stock market reached a record high.

    In 2016, the Russian Micex stock index has increased by 25 percent, making Russia the six-best performer among 23 emerging economies tracked by MSCI.

    The ruble has grown 13 percent against the US dollar, ranking third among all emerging markets, according to JP Morgan Chase.

    According to the article, one of the main reasons behind this is the correct monetary policy by the Russian Central Bank. The newspaper described the bank’s chair Elvira Nabiullina as "the woman who revived Russia’s markets."

    In 2014, the regulator decided to float the ruble exchange rate and then sharply increased interest rates to prevent capital flight and curb inflation.

    Those steps were painful for the Russian economy which was in recession due to the falling ruble. However, the measures gave results and helped restore international investors’ confidence in the Russian economy, the article read.

    "The correct steps taken by the Russian Central Bank have restored confidence in the ruble and its macroeconomic policy," Andrei Kutuzov, a portfolio manager of the Wasatch Emerging Markets Small Cap fund, told the newspaper.

    Related:

    What Sanctions? Foreign Investors Keep Placing Money Into Russian Companies
    Why the Ruble Becomes More Independent From Global Oil Prices
    Why Russia Keeps Investing in US Economy Despite Political Tensions
    Russian Economy Model Must Reflect Long-Term Low Oil Prices, Sanctions
    Tags:
    crisis, investment, economy, ruble, Russian Central Bank, Elvira Nabiullina, Russia
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik