Russian currency ruble making records in 2015 | Russian visa
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Russian currency ruble burst the US dollar bubble!

The currency that was in news in 2014 Its is now making its way to the headlines in 2015 as well . Once again it is on track to beat all records of being the best. Yes this is the Russian currency, Ruble! The Moscow exchange closed Ruble on 50.89 against dollar , this Tuesday 14th April. However the EU’s currency was sold at the Russian exchange rate of 54.17.  This is the first time since November 2014,  that the Russian currency ruble making records and their reserves have gone  much higher.

During the time of February till April . Ruble made an improvement of 34%. This gave Russia a huge psychological victory over USA.

Russia's Currency ruble, Russian Currency, Russian currency ruble making records

The Increasing Competition of Ruble vs Dollar

KEY FACTORS CONTRIBUTING TO THE GROWTH OF RUSSIAN CURRENCY

Many factors are involved in this drastic improvement of Ruble against Dollar. Lets have a look at them.

Rise in oil prices affecting Ruble

The improvement in the oil prices worldwide has stabilized Russian currency. It is the most important export product of Russia. However, the rise in Ruble is much higher than the rise in oil prices.

This is because for the past few months oil prices and currency rate were not matching. Russian policy for the increase in oil prices to $50-$55 per barrel supported ruble.

Settling of Ukrainian crises

Anton Soroko is an analyst with Finam Investment. According to him the overall tension between Russia and Ukraine is stabled now. It the major reason for the improvement of Russian Ruble rate. The stability is measured  against Dollar and Euro.

He further thinks that there seems to be no reason to continue the sanctions against Russia. This ease of situation will further strengthen the ruble.

Reduction in interest rate affecting ruble

Konstantin Korishchenko is the deputy head of the Stock Market and Financial Engineering Department at the Russian Presidential Academy of National Economy and Public Administration.

About Russian currency news, Russian central bank recently took a decision about the interest rate. It was cut down from 17% to 14%. Further they have decided to grant $30 billion to foreign currency loans.Central Bank has largely controlled this instability of Russian ruble rate.

Ruble to dollar, Russian Currency

Ruble taking over Dollar

Despite of it, there has been no evidence of the investor’s increase. By the end of April the interest rate is further expected to drop by 100-200 points.

Issuance of Treasury bonds

Russia has launched its treasury bonds known as OFZ. They have a term period of 10 years. These bonds are a strong driver for the ruble improvement.

Other factors for Ruble Stability

  • The nuclear deal with Iran sent a positive signal for the progress of ruble.
  • Seasonal factors like May holidays driving the Rouble up. Speculators avoid selling the foreign currency at this time.
  • An Agreement between Greek Prime Minister Alexi Tsipras and Russian President Vladimir Putin is a great contributing factor. It included the promises of making Russian investment in Greece. 

The growth of Ruble vs Dollar is giving high boost to the Russian economy. The overall economy is progressing quickly. It is giving strong competition to largest economies of the world. Russian Government is also creating appreciable support to its economists and market runners. Such appreciation and rise in oil prices will surely bring continuous growth for Ruble.

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