Foreign exchange transactions spiked this week, as Russians tried to capitalize on the fall in the value of the ruble, Russian daily Vedomosti reported.
A number of Russian banks reported a significant increase in both buying and selling of U.S. dollars and euros, the paper said.
The Ural Bank for Reconstruction and Development said its sales of dollars were twice the usual rate Tuesday and demand for euros rocketed three-fold. Absolut Bank also recorded a three-fold increase in purchases of foreign currency over the weekend.
Meanwhile, other financial outlets, such as Vostochny Bank and Bank Saint Petersburg (BSP) said the market moved in the opposite direction, with Russians seeing the fall in the ruble as a good time to swap their stashes of euros and dollars. Vostochny said customers were buying twice as many rubles as foreign currencies, and BSP said purchases of the local currency were up by between 15% and 30%.
The ruble has seen significant volatility in recent days, slumping to 75 rubles against the U.S. dollar over the weekend, from an exchange rate of around 60 at the start of the year.
However, customers trying to profit from the volatility on the retail market would have had to deal with large spreads — the difference between the price at which traders buy and sell the same currency — which eats into potential gains. Sergey Romanchuk, a representative of the ACI Financial Markets Association in Russia told The Bell that retail investors probably missed any opportunities to turn a quick profit and advised against trading until the foreign exchange markets have calmed down.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
