Russian financial market to face new crisis

Baku. 27 December. REPORT.AZ/ Negative trend in Russian currency market hit a record high in December. 

Report informs citing the Expert.ru, though the external debt reached a peak of payments and currency liquidity problems faced by major banks, ruble continues to strengthen.

According to the Head of the International Capital Markets Department of Institute ofWorld Economy and International Relations of the Russian Academy of Sciences, Yakov Mirkin foreign "hot money" ensured the stability of the ruble.

Thus, "bubble" formed in Russian foreign exchange market. Thus, according to the Bank of Russia (Central Bank), since the beginning of this year foreign funds invested 300 bln rubles (5 bln USD) in Russian state bonds. In addition, speculative investments made in rubles hit a historical record of the Chicago Mercantile Exchange.

Y. Mirkin believes that non-residents purchase assets in dollars and euros at lower percentage, convert them to ruble and invest them in deposit or bonds at high percentage (10%): " This, in turn strengthens the ruble. However, in case of any risk in Russian financial market, these funds will soon leave the country and cause crisis in foreign exchange market. This standard mechanism took place 3 times in Russia and seems to be the 4th time."