Currency only affects market sales of the Russian ruble

Currency only affects market sales of the Russian ruble

The main reason for the Russian currency's collapse in the ruble on the last day of the usually successful month is calendar factors.
Now, the deteriorating market situation in emerging markets is competing with the ruble. The ruble noticed its fixed profit at the end of the month after apparently recovering its risky assets a few days ago. Since the demand for risk is a response to the gradual relaxation of the isolation system in different parts of the world, the Russian currency fell significantly before the last trading day in April and the longer Russian weekend, and then the local high was updated (yesterday 73.69 rubles/USD on the trading day).
There are also local factors-the supply of export earnings at the end of the tax period decreases, and as the cost of Russian oil rises, the central bank’s foreign exchange sales may decrease.

In May, the stock exchange will mainly conduct trading, and now positions are closed, and some Basile people may just buy cheap currencies," a trader at a large Russian bank whose view was cited by Reuters explained the change in the exchange rate of the dollar.
The Moscow Exchange will be held throughout the next week, but on Monday and Tuesday-only in settlements (May 6), and without participation, will return to the market through the sale of currencies on Wednesday.

These operations of the regulatory agencies are still an important factor supporting the ruble exchange rate in the current environment.
The central bank is now selling foreign currencies through share transactions with the budget within the framework of the budget, but as the price of Russian Ural oil rises, the regulator may further reduce the latter's trading volume. Said that players on the Russian market will be away for a long weekend. Considering that in recent days, almost all central banks have not only managed to determine the size of the discount rate, but also expressed their attitude towards additional monetary stimulus measures. Therefore, in this respect, it is most likely that there is no need to wait for any major news. It is possible. he. In this context, what is most interesting is the state of the energy market-after all, since May 1st, countries that have formally reached an agreement to cut oil production must begin to actually reduce supply. Given that not everyone has the physical ability to move quickly (some people may not be in a hurry), it will be very interesting to observe how events in this area will develop, which is extremely important to our economy," Kolenev added Say. The market will continue to pay attention to the virus market, and investors hope to peak global virus activity in the coming weeks. In the absence of new negative shocks in the market, including the resumption of a positive decline in oil prices, the pressure on the ruble will remain moderate. He concluded that the Russian currency may receive some support from the debt market, and the inflow of foreign capital may increase in the near future. In the future, only those companies that invest in digitalization can survive, and this process cannot be stopped. Russian Ruble in Crisis as Western Sanctions Bite