Russian stocks booming as ruble becomes best-performing emerging market currency
Data shows that foreign ownership of Russian bonds has surged to a five-month high (rising above 20% for the first time since April) while measures of credit risk have eased back to pre-Covid levels.
Analysts say that for investors who look for certainty, Russia has shown itself as a predictable environment with little risk of a sudden change or policy U-turns.
“Markets like the technocratic orientation of the Russian government,” Timothy Ash, an emerging-market strategist from BlueBay Asset Management, told Bloomberg. “It encourages them to look the other way when it comes to ESG [Environmental, Social, and (Corporate) Governance].”Also on rt.com Russian ruble makes top 20 popular currencies list
The Russian ruble is this year’s best performer among its emerging-market peers. It has also become one of the 20 most frequently used global currencies, according to the SWIFT interbank transfer system.
The ruble-denominated Moscow Stock Exchange Index (MOEX), which reflects the prices of the most liquid Russian stocks of the largest companies, has rallied 23% this year. The dollar-denominated RTS index has soared 26%.
With foreign-exchange reserves currently at a record-high of $621 billion, the Russian economy is expected to grow 3.9% this year.
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