Saxo Bank predicts decline in Russian ruble

Baku. 3 October. REPORT.AZ/ The "carry trade" transactions in Russian rubles are about to end.

Report informs, Denmark’s online investment bank Saxo Bank said.

Bank's chief economist Steen Jakobsen said that foreign investors' share in the Russian government bonds market is very high: “If they begin to withdraw from Russia's assets, there will be a sharp drop in ruble", Jakobsen predicts that the dollar's rate will rise to 62 rubles by year end.

Notably, investors who bought Russian bonds by selling dollar in the last 12 months, earned about 18% net profit. They gained profits from the depreciation of ruble rate. But in the past month, interest in these transactions, called "carry trade", has begun to decline. According to a survey conducted by Bloomberg, the ruble will be losing its attractiveness in next one year.

Analytical Group of Report News Agency notes that profitability of foreign investors has dropped due to the stabilization of the US-dollar rate and decrease of the discount rate in Russia: "Therefore it is assumed that they will direct their investments to other countries".