Ruble, the major currency of Russia has increased the most in last 2 months against the target Dollar-Euro basket of Russia’s Central Bank. Oil prices have increased and various companies bought local currency for making tax payments. Against Bank Rossii’s basket, Ruble has increased by 0.3% on today and this marks its strongest advance on a closing basis since 8th January. On the other hand, Ruble has increased by 0.3% against USD and is currently priced at 30.88 per USD. The currency has advanced against Euro as well as it is priced at 39.8750 per Euro at this point of time, increasing by 0.2%. Government bonds which are due by February, 2027 have increased by 3 basis points and are currently at 7.47%, marking its lowest value for the current week.
The main export earner of Russia is Crude oil. Crude oil prices have jumped up by 0.7% on today and each barrel costs $108.24 now. According to the reports published by HSBC Holdings Plc., several Russian companies will be transferring around 200 billion Rubles (Worth $6.5 Billion) of value added tax to the state budget by end of this week. The note on this matter was published on 4th March. Incidentally, the Finance Minister of Russia will discuss certain economic aspects with his Cypriot counterpart on today’s meeting, which is to be held in Russia.
On yesterday, an auction was planned to sell 20 billion Rubles of the 15-year Government bonds, however the same was cancelled by the Finance Ministry. Instead of this auction, the Russian Government will be offering 6.22 billion Rubles of bonds due in February, 2019. The yield will be somewhere between 6.53% and 6.58%, according to an official statement which was released on yesterday.
Incidentally, many Russian lenders and companies had near to $31 billion placed in the Cypriot banks or their own units at the year end of 2012. A report on this was published by the Moody’s Investors Service on 13th March. According to the ratings company, the remaining $29 billion in exposure comes in from the Russian bank loans to the Cypriot companies which are of Russian origin.
Many economists feel that Ruble may advance further depending on the price of Crude oil. It this increases to $110 per barrel within the next few days, Ruble is expected to receive a huge boost.