In terms of FX trading and Forex rate predictions, the Bank of Russia has one of the world’s most stable forex rate regimes. It is the second-largest producer of crude oil, and it also acts as a supplier to many countries in the region. Most importantly, however, the country’s large size and economy help it serve as a bridge between Europe and Asia, an essential economic and political partner for the country. For many years now, various economic indicators have shown that the country is on the rise. This is attributed to a blend of factors, including the liberalization policies of the current government, rapid economic growth, and a significant outbreak of financial crises in the United Kingdom, amongst others.
The economic indicators that the Russian economy is growing incredibly fast are underpinned by the ever-increasing trade surplus that the country earns. According to the Bank of Russia, the ruble’s value against the dollar was constantly weakening until recently, but it has recently followed a very positive trend. Although analysts around the world are closely watching the direction of the ruble, they are also keeping an eye on how the exchange rate plays a role in the overall economy. The balance of trade between the United States and Russia has gradually worsened, with the United States exporting more products to Russia and vice versa.
Trading Between Currencies
At present, the Forex Trading between the currencies of the United States and Russia has dropped down to its lowest level in almost nine years. As a result, the United States has temporarily eased off its stimulus measures and other economic measures aimed at restoring the situation. Meanwhile, the Russian economy is regaining its foothold in the world economy. Although this is not intended to be a long-term explanation, most traders and analysts consider that the recent fall in the ruble indicates that the United States is preparing to shift towards Eurasian integration.
According to some experts, three main factors led to the current global financial crisis. These are the weak American economy, high oil prices, and the instability of the financial system in the country. These problems have become so significant that most countries are now trying to stabilize the situation. One of the most viable solutions lies in enhancing competitiveness in the global market. To do this, many foreign companies decided to establish their base in Russia.
Believe of Economic Analysts
Economic analysts of the country believe that the main reason why the ruble lost its value was the US administration’s policy towards the globalization of the Russian market. The policies of the American government include promoting the development of the Russian economy and removing all obstacles that surround it. This is one of the reasons why the US economy relies on support from the Russian market. However, economic analysts believe that the support from the Russian market will only strengthen the country’s economy in the long run because trade is a two-way street. Both the buyer and the seller of the currency are equally crucial in the process of globalization. Therefore, as long as both parties continue to provide support for each other, the ruble will maintain its international value and will eventually increase again. To illustrate this point, let us take the example of wheat. The price of the commodity usually depends on the exchange rate regime of the bank of Russia. If the market rates are constantly changing, it would be difficult for the farmers to profit from selling their produce. This is why they usually prefer to buy Russian grain rather than getting Western standard products. This is an important aspect that determines the exchange rate regime of the Russian market.
How Businessman can Make Profit?
On the contrary, if the market rates are stable, the businessmen can quickly profit by selling goods on the Russian market. In addition, they also hope that the exchange rate regime of the bank of Russia will not go up. In this case, they can control the prices of their products and get them at the right time. Therefore, if the market will move according to the wishes of the investors, the people of the country will benefit from the increase in the market. Moreover, the country’s government will receive more revenue from the foreign trade that is conducted in the country.
It is undeniable that a reasonable exchange rate is necessary to secure the national economic interests of the Russian state. However, the rise of the ruble will change the level of the gross domestic product and influence foreign trade. A high exchange rate can weaken the country’s economy, which is why people in business are very cautious about their investment decisions. On the other hand, the country’s recent economic problems have shown a need for business people to have close interaction with the Russian market. By doing so, they can predict the rise or fall of the ruble.