The ruble: the Central Bank turned on the printing press, what will happen to the course
Central Bank turned on the printing press to rescue banks. Trump continues to criticize the fed for raising rates. The ruble has all chances to strengthen the tax period.
At the end of September the Central Bank has given commercial institutions 363 billion rubles in loans secured by non-marketable assets. Thus, the debt of commercial banks to the Central Bank exceeded 3 trillion rubles. All this is, in fact, due to the inclusions of the printing press. The main goal is stabilization in the banking market. We will remind that in August-September, the banks faced a significant outflow of funds from deposits. One only Sberbank for two months lost almost 2 billion in dollar deposits.
Meanwhile, the President of the United States of America continues to criticize the fed. Trump called the Federal reserve system his “biggest threat”. Previously, he has repeatedly criticized Powell’s for being too quick to raise interest rates. Trump is quite understandable, because it stands for economic growth and the welfare of the American population. High interest rates can put an end to the growth of the U.S. stock market, economic growth, and income.
On this background the dollar exchange rate on the Moscow stock exchange is kept around 65 rubles 40 kopecks, the Euro traded at around 75 rubles 65 kopecks. The MICEX index rose to 2420 points, and quotes of Brent oil hovers above $ 81 per barrel. Bitcoins according to CoinMarketCap are located just below 6600 dollars.
The ruble continues to advance against the dollar and the Euro. The idea of introduction of new Western sanctions have already played. The price of oil fairly stable and high. Along with this very soon the exporters will have to pay tax on extraction of mineral resources. All of this can locally lead to a temporary decrease in the us dollar exchange rate is below 65 rubles to the dollar.
Recall that earlier we already repeatedly recommended buying dollar/ruble in the range from 65 to 66 rubles. In case if a break below $ 65, it will be a great opportunity to open transactions. After the completion of the tax period is extremely unlikely that the us currency will stay below $ 65. We recall that the expected growth in areas 67-68 rubles in the medium term.
The head of the analytical Department of the company,