3 Reasons to Trade the Ruble now - BDSwiss
The crisis in the Crimea seems to have no end and the media are already talking about conditions like back during the cold war. Russia demonstrates strength and the West seems politically clueless. The former foreign policy global power US is as weak as never before in its short story. Nevertheless, the economic sanctions hit Russia hard. In my article today I will show you how you can trade the ruble right to earn money from the crisis.
In the end we will never know the real reasons for the war in the Ukraine, whether it comes to territorial claims or mineral deposits. Who knows for sure. In any case, the population is suffering – not only in the Ukraine.
The Ruble under pressure
The economic sanctions against Russia are not confined to trade in goods. The limitation of free capital movement affected Russian economy much harder. Thus, companies can refinance only to significantly worse conditions. This means that the profits of Russian companies suffer. Many had to give up entirely. So the Russian economy will probably grow only 0.3 percent next year. Taking into account that the largest country in the world is still a developing country, the number is frightening!
Unstable future prospects
The media always loves to talk about our dependence on Russian gas. However, this is only half the truth. Even Russia is enormously dependent on our gas imports. We are by far the most important customer of Moscow. Also huge pipeline projects with China will not change that in the near future. Should the European Union decide to not import Russian gas anymore and instead rely on alternative sources from North America or Africa, this would plunge Russia into a deep economic crisis. Unlike the economies in Europe, the Russian economy is heavily dependent on oil and gas sales.
The reason why the European Union has not implemented this yet, is not only because of the additional costs that would be associated with it. This would require long-term contracts with Russia to be repealed. This would lead to a lasting loss of confidence in Russia and make the raw materials more expensive. The basic trust towards international agreements would be destroyed.
This is how you can trade the ruble now!
These 3 facts put the ruble under a lot of pressure. I personally trade the ruble in two variants: First, I set forth on falling prices, because I believe that it will take some time to resolve the conflict in the Ukraine. So I already secure a nice profit for myself before I put back on a rising rubles by the end of the crisis. This way I win twice. I recommend here the USD / RUB!