Ruble rises on tax payments

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The Finance Ministry is unhappy with the current yield on OFZ. Market participants are concerned about the decline in oil prices. The ruble is growing against the background of the tax week.
Deputy Finance Minister Sergei Storchak answering questions about whether the Treasury’s current yield of OFZ, said: “to be honest, no.” However, he said that next week the Finance Ministry will try to increase the overall supply of government securities. If the Ministry of Finance can accommodate larger volumes of OFZ, then it may support the domestic currency.
Meanwhile, market participants are concerned about the situation in the oil market. Quotes of Brent crude oil fell below 63 dollars a barrel. Oil traders are waiting for the reaction from OPEC+. Only a reduction in oil production may lead to reversal in the medium term. While Mineko Russia suggests that in the long term, oil prices will remain near $ 50 per barrel, this was stated by the Minister of economic development Maxim Oreshkin.
On this background the dollar exchange rate on the Moscow stock exchange is kept around 65 rubles 55 kopecks, the Euro traded at 74 rubles 80 kopecks. The MICEX index rose to 2460 points, and oil quotations of mark Brent are holding just below $ 63 per barrel. Bitcoins according to CoinMarketCap dropped to $ 4,500.
The domestic currency is growing due to taking place in Russia the tax week. Soon the exporters will have to pay taxes on mineral extraction. This factor has traditionally provided support to the ruble. The peace of mind and confidence in the market gives, what the us Congress this year will consider a new package of sanctions against Russia.
However, this factor has largely factored into current prices. In our view it is unlikely that in the near future we will see a break below the level of 65 rubles per dollar. Earlier, we have recommended to open trade to buy the dollar in the range from 65 to 66 rubles. The expected growth by the end of this year in district 67 and 68 rubles per dollar.
Gleb Zadoya,
The head of the analytical Department of the company,