FX.co ★ Best performing currency, or Russian ruble gains momentum!

Economists suppose the Russian ruble has positive outlook. According to expert opinion, investments in the Russian ruble are the most profitable this year. As a rationale the experts cite the analysis of Russia’s preceding crises.

Sergei Dubinin, chair of the finance and credit department of the faculty of economics at the Lomonosov Moscow State University and former head of the Central Bank of Russia, says “economic situations when economic crises took place in Russia were different and the key distinction between the current situation and the previous one is a completely different state of the budget.” Moreover, country’s residents pay taxes regularly, which had not been seen until 2000. At the moment the situation resembles the crisis observed in 2002. The revenues from exports are rising; oil goes up in price, thus helping the ruble to strengthen.

“All in all, in some ways the government decides to forgo some principles of floating rate. The refusal of inflation targeting would be harmful. The automatic market response eases the threat of economic meltdown,” Sergei Dubinin says, “The rate should have been dropped even in 2013, then we would not see that market crash. Even temporary interference induces considerable fluctuations and panic in the market.”

Thus, having a wide experience of operating in terms of the crises, Russia may apply wide knowledge and try to lead the ruble to the former rate against the US dollar and euro.