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22 Mar 2016
RUB keeps its bullish outlook in the longer run – Danske Bank
Vladimir Miklashevsky, Economis/Strategist at Danske Bank, has assessed the prospects for the Russian currency.
Key Quotes
“As we expected, the RUB continues to be the best play among oil producers on a rising oil price”.
“Yet Russia’s currency has moved closer to its equilibrium levels as its strengthening has been subdued. Thus, the current levels in RUB are much more comfortable for the state budget than they were in the autumn 2015”.
“We continue to be bullish on the RUB in the long run as the free float is protecting Russia’s current account surplus and economy despite probably another year of a slump”.
“The rising oil price prospects, an upward oil futures curve and marginal FX redemptions by the corporate sector, combined with low FX demand by individuals, are also RUB supportive”.
Key Quotes
“As we expected, the RUB continues to be the best play among oil producers on a rising oil price”.
“Yet Russia’s currency has moved closer to its equilibrium levels as its strengthening has been subdued. Thus, the current levels in RUB are much more comfortable for the state budget than they were in the autumn 2015”.
“We continue to be bullish on the RUB in the long run as the free float is protecting Russia’s current account surplus and economy despite probably another year of a slump”.
“The rising oil price prospects, an upward oil futures curve and marginal FX redemptions by the corporate sector, combined with low FX demand by individuals, are also RUB supportive”.