MOSCOW (Reuters) – The Russian rouble will stabilise at round 100 to the U.S. greenback after the interval of volatility within the aftermath of U.S. sanctions on Russia’s monetary sector, CEO of Russia’s second largest lender Financial institution VTB Andrei Kostin advised Reuters on Monday.
The Russian foreign money weakened by 15% in opposition to the U.S. greenback after the USA sanctioned Gazprombank, which dealt with Russia’s power commerce with Europe and was a significant provider of international foreign money to the Russian market, on Nov. 22.
“In 2022, in case you bear in mind, the greenback reached as much as 120 roubles. A correction is already occurring, the greenback is barely above 100, and I believe it is going to stay at this stage,” Kostin mentioned.
Kostin mentioned that the share of the U.S. greenback belongings on VTB’s stability sheet has drastically decreased following Western sanctions.
“Beforehand, half of the financial institution’s stability sheet was in {dollars}, and each change price motion had a major affect on us. However now we simply could not care much less,” Kostin mentioned.
“I perceive that exporters are happy (with the change price leap following one other bundle of sanctions from the U.S. Treasury), whereas importers usually are not very pleased, however to a big extent, that is an emotional outburst,” he added.
