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Author Topic: The Value of the Ruble  (Read 2310 times)

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Offline Omega1982

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The Value of the Ruble
« on: November 10, 2016, 02:35:53 AM »
Now that Trump will be the next US president he might consider lifting the economic sanctions.  Does this mean the ruble will re gain some value? 

Do you think it might be a good time to buy some rubles? 

Although it has seemed that the prices have gone up in Russia.  A latte is still around $3 to $4.  I have a driver/ guide in Moscow which charges 1800 RR per hour which now is around $30 per hour but I doubt he charged the same in 2013 which would have put him at $60 per hour. 

Any thoughts? 

Offline andrewfi

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Re: The Value of the Ruble
« Reply #1 on: November 10, 2016, 02:55:50 AM »
When you talk about prices going up in dollars in a country that does not use dollars as its currency then you are confusing yourself, and the rest of the world!

If the dollar goes down in value against the ruble (as it has this year) then the price in dollars will go up, but that has nothing to do with the actions of the taxi driver or grocer.

It would be more helpful to you to use ruble values when talking of prices in Russia.

The chances are that your taxi driver would have charged you around 900 rubles back in 2013 which was about $30 back then.

And no, not a time to buy rubles just to hold them. Now it is a good time to engage in what is called by blokes who know 'Carry Trade'. That is you borrow dollars at low interest rates in the USA and you buy investments denominated in rubles in Russia. Currently investments in Russia are seeing good returns: CLICK HERE!

"For what else is the life of man but a kind of play in which men in various costumes perform until the director motions them offstage?" -Erasmus

Online msmoby

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Re: The Value of the Ruble
« Reply #2 on: November 10, 2016, 04:00:12 AM »
The R.Rouble has been pretty stable atjust under 80 to the GBP ..after the Brexit 'adjustments'.

The strength of the RR is strongly linked to Energy prices.

If you think they will rise..bet on the RR.

It was c.40-50 to the GBP when energy prices were double what they are now.

Inflation within Russian reflected both the fall in the Rouble and consequential price rises. Inflation is slowing..but at a rate western economies would regard as high.

The housing market is flat.

Great deals to be had on consumer goods.

I do not think the time is right to bet on substantial gains..

If one is brave.. Buy property and rent it out.. the returns are greater than the western markets I know. I am only familiar with two cities' housing markets. Not Moscow or Piter.

The GBP worth a punt when all the Brexit negotiations seem clearer.. it is now undervalued.

Your currency.. ? I have NO idea..in the last two days...it has done the opposite of my expectations on two occasions !)



Online msmoby

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Re: The Value of the Ruble
« Reply #3 on: November 10, 2016, 10:01:37 AM »
Only a few hours have pased and the GBP has gained five percent against many currencies .incl.Rouble.?

Who' d try and win every day in currency trading?




Online Tom Cat

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Re: The Value of the Ruble
« Reply #4 on: January 31, 2017, 09:16:46 PM »
Don't shoot the messenger, links to articles posted, don't necessarily reflect my personal opinion.

Online Tom Cat

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Re: The Value of the Ruble
« Reply #5 on: February 10, 2017, 10:04:19 AM »
1 US Dollar equals58.36Russian Ruble

Slowly each week the ruble continues to gain on the dollar.
Don't shoot the messenger, links to articles posted, don't necessarily reflect my personal opinion.

Offline andrewfi

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Re: The Value of the Ruble
« Reply #6 on: February 10, 2017, 11:06:24 AM »
The ruble is now at about the level that the RCB wanted to see before all the silliness started in 2014.

"For what else is the life of man but a kind of play in which men in various costumes perform until the director motions them offstage?" -Erasmus

Offline Steveboy

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Re: The Value of the Ruble
« Reply #7 on: February 14, 2017, 10:24:53 AM »
1 US Dollar equals58.36Russian Ruble

Slowly each week the ruble continues to gain on the dollar.

And slowly my weekly food bill is going up  :laugh:


Offline andrewfi

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Re: The Value of the Ruble
« Reply #8 on: February 14, 2017, 10:27:38 AM »
1 US Dollar equals58.36Russian Ruble

Slowly each week the ruble continues to gain on the dollar.

And slowly my weekly food bill is going up  :laugh:

I'd guess that most of your income is in dollars yes?

I have been experiencing something of a pay rise recently for that reason, although on the other hand, the behaviour of the pound has had the opposite effect, leaving matters, overall, as something of a wash.

"For what else is the life of man but a kind of play in which men in various costumes perform until the director motions them offstage?" -Erasmus

Offline Steveboy

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Re: The Value of the Ruble
« Reply #9 on: February 14, 2017, 11:08:27 AM »
1 US Dollar equals58.36Russian Ruble

Slowly each week the ruble continues to gain on the dollar.

And slowly my weekly food bill is going up  :laugh:

I'd guess that most of your income is in dollars yes?

I have been experiencing something of a pay rise recently for that reason, although on the other hand, the behaviour of the pound has had the opposite effect, leaving matters, overall, as something of a wash.

Yes $ but it was £. I changed it over to $ just before the referendum to be safe :) But the last two years the amount of roubles we have each week has changed a fair amount. Its been like Christmas for the last 18 months  if the rouble ever went back to its old rate we will be on Herrings and soup for dinner most of the week.. :laugh:

Online AvHdB

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Re: The Value of the Ruble
« Reply #10 on: February 14, 2017, 01:48:14 PM »
The ruble is now at about the level that the RCB wanted to see before all the silliness started in 2014.

This is almost silly.

Look at the Russian currency and look at the price of oil. Look at the trend over six months please.

Anyone out there get it?

“If you aren't in over your head, how do you know how tall you are?” T.S. Eliot

Online Tom Cat

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Re: The Value of the Ruble
« Reply #11 on: February 14, 2017, 01:51:07 PM »
1 US Dollar equals57.15Russian Ruble

Don't shoot the messenger, links to articles posted, don't necessarily reflect my personal opinion.

Offline andrewfi

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Re: The Value of the Ruble
« Reply #12 on: February 14, 2017, 07:39:52 PM »
Avhdb, you obviously do  not know about this stuff however many central banks have a target exchange rate expressed in certain currency pairs typically the US dollar.  The he Russian Central Bank is no different. The Russian Central Bank several years ago, expressed a target range for the Russian ruble when under a free float regime. We should remember that the oil is only a part of the Russian economy and it's importance is falling however the price of oil is not what the rouble value is about.

The central bank's targeting serves several purposes and is thus a compromise.

What many people forget, including nieve posters here, is that in 2014 the Russian central bank was moving to a free float away from its managed regime and that the bank recognised the exchange rate over the previous time had overvalued the rouble. When the correction, forced by external events, took place there was, from the Russian perspective, an overshoot. That overcorrection is now pretty much reversed.

"For what else is the life of man but a kind of play in which men in various costumes perform until the director motions them offstage?" -Erasmus

Offline Texan77

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Re: The Value of the Ruble
« Reply #13 on: February 14, 2017, 08:16:26 PM »
Russia largest exports are related to energy production. The price of energy has a large effect of the balance of payment Russia receive from trade and is a huge factor in the value of it's money. Even after sanctions the EU is by far Russia largest trading partner and energy is by far its most valuable export.

http://www.tradingeconomics.com/russia/exports

Offline Boris

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Re: The Value of the Ruble
« Reply #14 on: February 15, 2017, 09:06:01 AM »
Russia largest exports are related to energy production. The price of energy has a large effect of the balance of payment Russia receive from trade and is a huge factor in the value of it's money. Even after sanctions the EU is by far Russia largest trading partner and energy is by far its most valuable export.

http://www.tradingeconomics.com/russia/exports

Tex, your a good guy. But, every time I read one of your posts I get a "I'm really from Shanghai vibe."