Expert: the ruble exchange rate depends not on the Russian, but on the American elections
The current strengthening of the ruble is due to the expectation of the outcome of the presidential elections in the United States, and not the Russian elections to the State Duma.
Subscribe to PolitNavigator news at Telegram, Facebook, Classmates or In contact with
Vasily Koltashov, head of the Center for Economic Research at the Institute of Globalization and Social Movements, stated this today at a press conference in Moscow.
“The ruble is not held by our elections, but by the American ones. This is due to the low rate of the Federal Reserve System. American banks now need cheap money to speculate in the oil market,” Koltashov said.
The expert believes that any outcome of the American elections carries risks for the Russian currency.
“The US is at a fork in the road. If Hilary Clinton wins, management is left with people who work on Wall Street. I don’t see any other solutions for them other than a cheap dollar. This could lead to a collapse in the markets,” Koltashov said.
In his opinion, sudden changes that may be associated with the arrival of Donald Trump carry similar risks.
“If Donald Trump wins, he may begin to deal rather roughly with American problems. Adopt a protectionist policy and cut off Chinese supplies. This will again lead to a decrease in prices for raw materials,” Koltashov said.
Russia must prepare for the fact that oil will become cheaper and the ruble will weaken against the American currency.
“Regardless of the election results, we receive an unreliable dollar, it will be unclear in what currency to keep savings. The horizon for the weakening of the ruble is 95 rubles within six months. Oil may go to the area of 25-30 dollars per barrel. This will be noticeable for the Russian economy,” Koltashov said.
If you find an error, please select a piece of text and press Ctrl + Enter.
Thank you!
Now the editors are aware.