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RUB dropped to 2016 level after US sanctions

RUB dropped to 2016 level after US sanctions

Russian ruble is passing through the notable falling. To the Tuesday’s evening, a USD/RUB pair has turned down to its minimums since 2016. The reason of this drop of Russian currency is in US sanctions.  The Russia’s largest aluminum producer, the RusAl Company, is under sanctions too. Company’s stocks lost in twice during the Monday’s trading.

RUB’s slump has influenced analytics opinion about further plans of Bank of Russia. Earlier, most of experts were sure that another, April, 27, regulator’s meeting will cut rate on 75 points. Now, markets aren’t expecting any mitigation of credit-monetary policy.

But as it were expected by William Jackson, the Capital Economics’ senior economist, ruble’s sales may be temporary like in 2014, in a period of first sanctions. Also, March’s inflation was 2,4% and it was lower than predicted 4% level. Bank of Russia may continue rate hike even in a case when ruble’s decrease would provoke inflation expectations.

 Remind, US imposed new sanctions, which included 24 businessmen and politics as well as 14 corporations.  Since the moment a bill will come into force, US citizens and businesses are forbidden to conduct any business with individuals and legal entities that are included in the US government list.