The Russian Ruble Will Stabilise at Around 100 to the US Dollar, Says CEO of Russia’s Second-Largest Lender
Andrei Kostin, CEO of Russia’s second-largest lender Bank VTB, has predicted that the Russian rouble will stabilize at around 100 to the US dollar after the period of volatility following the US sanctions on Russia’s financial sector. The currency weakened by 15% against the US dollar after the United States sanctioned Gazprombank, which handles Russia’s energy trade with Europe and is a major supplier of foreign currency to the Russian market, on November 22.
However, Kostin stated that the share of US dollar assets on VTB’s balance sheet has significantly decreased following Western sanctions, and the bank is less affected by exchange rate movements. He believes that a correction is already happening, with the dollar slightly above 100 roubles and expects it to remain at this level in 2022.
Kostin also commented on the potential impact of the exchange rate jump on exporters and importers, stating that some exporters are pleased with the increased value of the dollar, while importers are not happy. However, he believes that this emotional outburst will subside as the market adjusts.
The Russian rouble stabilized at around 120 to the US dollar in 2022, and experts predict that it will stay at this level. However, the CEO of VTB believes that the bank will not be significantly impacted by the exchange rate due to the decrease in dollar assets on its balance sheet.
