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Full Version: Bet On Rubles and Francs
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http://www.forbes.com/archive/forbes/200...KzAwMDA%3D

Quote:Something big happened in the currency markets on July 1, but if you read only the mainstream media, you might have missed it. On that date Russia made its ruble fully convertible for the first time since Aug. 8, 1914. More precisely: It lifted all restrictions on ruble flows into and out of the country. The ruble can now be freely traded on international exchanges, and foreigners can hold ruble deposits in Russia and abroad. Investors are no longer required to keep interest-free deposits at the Central Bank (and pay an implicit tax) when they invest in Russian fixed-income markets.

Did this loosening cause a run on the ruble? Far from it. Over the past year the ruble is up 6.3% against the dollar, including 0.7% gained since July.

This move toward free markets is a very positive development in a country that has had a rocky conversion from communism to capitalism. Russia's fledgling capital markets stand to become deeper, more efficient and more fully integrated with international markets. In short, convertibility will push Russia further along the globalist path, stimulating capital inflows and further ruble gains against the dollar.

Why did reporters miss the ruble story? Because they've got their minds made up that Vladimir Putin is taking Russia back to its authoritarian past. They can't even imagine--let alone print--that a former KGB man could be presiding over any kind of economic liberalization.
Will the assassination of Andrei Kozlov have any impact on the further development of the financial markets/etc.?
I guess that means no more humiliating body searches when a Russian leaves the country for a vacation abroad.

-S

P.S. I couldn't bring myself to invest in Francs. I do keep a few roubles on hand.
SNK Wrote:Will the assassination of Andrei Kozlov have any impact on the further development of the financial markets/etc.?
I can guess only:
http://www.guardian.co.uk/international/...53,00.html
Stars & Stripes Wrote:I guess that means no more humiliating body searches when a Russian leaves the country for a vacation abroad.
In airports? Searches will continue and you know why... After explosions in plains we have no other options. Security in Domodedovo became very polite, but painstaking.
But if you are crossing border by car or train... It's another planet.
Stars & Stripes Wrote:I do keep a few roubles on hand.
Not so bad for begining...
Quote:In airports? Searches will continue and you know why... After explosions in plains we have no other options.

Right, I momentarily forgot about that aspect of security.

I was referring Russians counting their money in front of the customs officer, and then having the customs officer search the would-be tourist for undeclared money hidden in clothing or shoes.

On a personal basis, I feel a sense of relief. I'm no longer a crimminal for sneaking a few roubles out of the country.

-S