Expert opinions

Bank deposits may result in financial losses

Russian ruble may become much weaker against US dollar and euro, thus causing degradation of bank deposits in national currency, Professor Ruslan Greenberg, Doctor of Economics, Scientific Director of the Economics Institute of the Russian Academy of Sciences, believes.

Professor Ruslan Greenberg, Doctor of Economics, Scientific Director of the Economics Institute of the Russian Academy of Sciences
Professor Ruslan Greenberg, Doctor of Economics, Scientific Director of the Economics Institute of the Russian Academy of Sciences

He is certain it does not pay keeping money in banks now. The major danger is not a high inflation though (since it will not discourage Russians from opening bank deposits) but a fluctuating exchange rate.

Inflation will not gallop now as it was in the 1990-s, Professor Ruslan Greenberg stresses, yet a real threat to the ruble is its devaluation which may be much more dangerous than any inflation.

This autumn, Russian currency will find itself impacted by the pandemic and US-China trade war, as well as by oil prices which are likely to drop below $40 per barrel,” Alexander Bakhtin, investment strategist at BCS Premier, notes.

Alexei Krichevsky, an expert at the Academy of Finance and Investment Management, believes the national currency may hit an unprecedented bottom with US dollar being worth 80 or more rubles within the next two months, compared to current 73.

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