Seeing Russia's President Vladimir Putin as probably being the leader to bring the large country into the modern business world, Jim Rogers says Putin is taking the right steps to make that a possibility.
Having said that, Rogers isn't putting his money into the country yet, as there are still enormous infrastructure and ethical problems which must be addressed to bring more transparency and predictability to the Russian market.
What Rogers says he is looking to do is to invest in the Russian ruble.
That is apparently one of the strategies Rogers employs when looking at emerging markets which are taking the needed steps to provide an environment which will allow business to grow and thrive.
Showing posts with label Russian Ruble. Show all posts
Showing posts with label Russian Ruble. Show all posts
Friday, September 14, 2012
Wednesday, October 27, 2010
Citigroup (NYSE:C) Sees Russian Inflation on Expanding Money Supply
Similar to what the U.S. is about to experience when the misguided Federal Reserve institutes another round of quantitative easing, Citigroup (NYSE:C) said the rapid growth of the money supply in Russia will result in increased inflationary pressure through 2011 in the country.
Citigroup economists based in Russia, Elina Ribakova and Natalia Novikova, wrote in a research note that they see inflation growing to 9.2 percent through the end of 2010, and at 7.6 percent for 2011, based on an increase in the Russian money supply of 30 percent for September.
They economists said, “Growing producer costs and the acceleration of money supply growth will add to inflationary pressures from the end of 2010 and into 2011. However, we expect the central bank will remain under pressure not to increase rates in order to support a greater issuance of government bonds.
“We are concerned that, without a significant appreciation, pressure on the ruble and a weak interest rate transmission mechanism, inflation will remain elevated in 2011."
The money supply in Russia has increased at an annual rate of over 30 percent each month for seven months in a row, culminating with an increase of 31.2 percent in September, according to data from Bank Rossii.
Citigroup economists based in Russia, Elina Ribakova and Natalia Novikova, wrote in a research note that they see inflation growing to 9.2 percent through the end of 2010, and at 7.6 percent for 2011, based on an increase in the Russian money supply of 30 percent for September.
They economists said, “Growing producer costs and the acceleration of money supply growth will add to inflationary pressures from the end of 2010 and into 2011. However, we expect the central bank will remain under pressure not to increase rates in order to support a greater issuance of government bonds.
“We are concerned that, without a significant appreciation, pressure on the ruble and a weak interest rate transmission mechanism, inflation will remain elevated in 2011."
The money supply in Russia has increased at an annual rate of over 30 percent each month for seven months in a row, culminating with an increase of 31.2 percent in September, according to data from Bank Rossii.
Thursday, October 21, 2010
JPMorgan (NYSE:JPM) Managing Russian Ruble Bond Sale
Along with Troika Dialog and OAO Gazprombank, JPMorgan (NYSE:JPM) is helping to manage the largest international markets ruble bond sale in the history of Russia.
The bond issuance could reach to as high as $3 billion, and is hitting the markets at the right time, as investors seek emerging markets investments with higher yields outside of the U.S. dollar, which continues to collapse.
According to Deputy Finance Minister Dmitry Pankin, the sale could come about as early as November 2010.
The problem with the issuance is the ruble itself, which while expected to increase in value, has no benchmark for ruble Eurobonds to be issued off of, so pricing them will be a challenge.
It remains to be seen if the hunger for alternatives for the U.S. dollar will help the issuance of the ruble bonds be successful. The ruble isn't considered that attractive either, but higher yields may overcome that.
The bond issuance could reach to as high as $3 billion, and is hitting the markets at the right time, as investors seek emerging markets investments with higher yields outside of the U.S. dollar, which continues to collapse.
According to Deputy Finance Minister Dmitry Pankin, the sale could come about as early as November 2010.
The problem with the issuance is the ruble itself, which while expected to increase in value, has no benchmark for ruble Eurobonds to be issued off of, so pricing them will be a challenge.
It remains to be seen if the hunger for alternatives for the U.S. dollar will help the issuance of the ruble bonds be successful. The ruble isn't considered that attractive either, but higher yields may overcome that.
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