Koltso Urala: Don’t sell off currency due to international conflict

23 March 2011 (11:29)

The launch of the international military intervention in Libya has already resulted in an immediate market response.

‘Provided certain factors are at play, such as the growing euro rate, exporters’ sales, growing tax payments and rising raw stuffs prices, the dollar might decline to 28 RUR. However, this process isn’t as simple as it looks. The fall of the dollar rate has to do with the fact that the market might also pay attention to the developments that actually support the dollar, such as the possible fall in the oil prices once the military action in Lybia stops, China going for stricter monetary policies, and Europe’s Central Bank’s decisions regarding the euro rate,’ says OOO Bank Koltso Urala Currency & Finance Director Igor Nesterovitch.

‘People have nothing to worry about, so if they keep their savings in some currency or another, an international conflict like this is no reason to sell this currency off,’ he adds.

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