Expert opinions, FINANCE

Immunity of national currency to anti-Russian sanctions

Invest Foresight approached Russian experts who expressed their doubts that new sanctions imposed by the US can significantly affect the value of the national currency in the short term.

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As Sergei Khestanov, assistant professor at Equity Markets and Financial Engineering chair, Department of Finance and Banking at the Russian Presidential Academy of National Economy and Public Administration, noted:

It does sound quite menacing, but it’s too early to expect any consequences. Besides, the devil is as always in the details. The wordings of the sanctions are rather vague. And it’s a separate matter, how those sanctions will be practically implemented. It is also possible, that Trump Administration will be slow in putting sanctions into action which will significantly reduce their impact. Situations like that have already been witnessed recently”.

Andrei Vashchenko, Director of Forecast Planning and Development at Gazpromtrans, pointed out that given the timeline of the legislative enactment process in the USA, the bill will be passed in some eight months, at best. It therefore can not influence the RUR/USD exchange rate at the moment. Still, the news on the legislative initiative was used to increase volatility of the forex market, the expert said.

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