Russian currency (Russian Ruble, RUB) in forex

Russian currency is one profitable currency which has been recommended by innumerable large banks of the world. Russian Rouble, for the past 500 years, has been established as the chief currency of Russian federation. Currently, it is being promoted as one of the most intelligent investments of the season.
Belief of the banks

Most of the banks believe that in the coming future, there would be a dramatic strengthening of the rates of the rouble. The impact of the currency meltdown and the global recession along with the spiraling rates of inflation has been jeopardizing the quotes and exchange rates of different currencies, thereby weakening their establishment in the forex market. so let's take a look on what the situation of Rouble has been undergoing over the past few months.

According to the Bloomberg, it has been opined by the Goldman Sachs, Merrill Lynch and Co and Deutsche bank that the exchange rate of rouble will undergo an increase to 4 % in the coming year. Thereby, the weakening of the existing inflation would take place as the Central bank of Russia would have to face tremendous pressure, which would later only cause the rouble revaluation. Though, the essential opinions of the western bankers have not been evaluated so far. Alexey Uljukaev, the vice president of the bank of Russia declared that the currency purchase of around 20 billion dollars had been taken into implementation, as one of the pivotal steps to limit the strengthening of the exchange rates of the rouble in the coming future.
Response to Banks recommendations

In return to the recommendations of the largest banks of the world for the purchase of rouble, the Bank of Russia clearly opines that the entire case is purely speculative. The increase in the exchange rate, which has been predicted by the three banks, tends to be one of the major troubles for the Russian economy, as it would increase the rate of inflation, which already has touched 13% in April. At the same time, the rouble strengthening would also have detrimental impact on the exporting of gas and petroleum.

But the Central bank also opined that the large reserves, balance payments and important economic indicators would be enough to prevent the devaluation of rouble, in spite of the global crisis hitting the shores. The Central bank also promises that no kind of volatility would be added in terms of the valuation of the rouble.
Financial position in 2007

Delving into the history, it's revealed that in the year 2007, the bank of Russia had supported the rouble strengthening during the inflation development to 8.5%. But at present, the inflation rate is about to cross 13.3%, which is at least five times more than the cumulative average index. Though, the consumer costs, which are restrained, have still not been affected by the two continuous discount rates issued by the Bank of Russia. Thus, at present, the cost of growth of the rouble continues to be the crucial tool to fight against the inflation, as mentioned by the Central Bank.

Thus, the expectations of the leading banking cooperation have transformed Rouble into one of the most perspective and anticipated currency of the world in forex marketing. Though, the manner in which its demand is growing, it would automatically cause the strengthening of the rouble.

Thus, on one hand the pioneer banks of the world proclaim the rouble strengthening which might occur within the coming 6 months, the Central Bank confidently declares that it has means to control the rouble fluctuations, which would definitely play a pivotal role in Forex trading.