Fajarasia.co – The Russian ruble is up about 4% against the dollar and euro on the day (23/5/2022), starting to climb to the highest level reached last week, the gains being supported by capital controls and upcoming year-end taxes. .
Known, the ruble on the day strengthened 4% against the dollar at 57.85, not far from 57.0750, its strongest level since late March 2018, reached on Friday. When trading with the euro, it has gained 4.4% to trade at 60.05 versus the euro, near its strongest point since June 2015 at 59.02, also reached on Friday.
The ruble has strengthened about 30% against the dollar this year despite the full-scale economic crisis in Russia, making it the best performing currency in the world, despite being artificially backed by controls imposed in late February to protect Russia’s financial sector.
According to analysts at Tinkoff Investments, Russia is also pushing export-focused companies to oblige to convert foreign currency earnings to rubles, and to freeze half of Russia’s gold and foreign exchange reserves. While the central bank and government are allowing restrictions, so the ruble may continue to strengthen further in the medium term,
“Near autumn, the exchange rate may start to stabilize near 60-65 levels as imports recover and restrictions could potentially be lifted,” said Tinkoff analysts.
Russian demands that foreign buyers pay for gas in rubles also contributed to the ruble’s recent rally, analysts said last week.
“The supply of foreign currency from exporters, high oil prices and the coming month-end tax period that typically prompts export-focused companies to convert their foreign exchange earnings into rubles to meet local obligations are all in favor of the Russian currency,” explains BCS Express, which is a member of BCS Express. a Russian container company, in a note received by Reuters.****
