#RussianRouble #EconomicTrend #CurrencyUpdate #USvsRussia #CapitalControls #CorporateTax #InterestRates #FinancialNews
The Russian rouble experienced a slight but notable strengthening on Tuesday, rebounding from its week-long low point against the US dollar and once again crossing the 90 mark. This revival was largely attributed to a mixture of support factors. Among them being capital controls put in place by the Russian government, month-end corporate tax payments which generally tend to buoy up the currency, and persistently high interest rates that attract investors to the rouble.
More specifically, one can observe that the capital controls play a significant role in curbing the outflow of money, consequently offering support to the national currency. In tandem with that, as month-end tax payments approach, corporations convert their funds into roubles to clear their dues, further contributing to the strengthening of the currency. Moreover, the Central Bank of Russia continues to maintain high interest rates, presenting an attractive option for investors to hold onto for better returns, making the Russian rouble a more appealing asset. The currency’s recovery indicates the potency of these combined influences in dictating market trends.
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