Russian Rouble Expected to Stabilize Around 100 per Dollar, Says VTB CEO
The Russian rouble is likely to stabilize at approximately 100 to the U.S. dollar following recent volatility triggered by U.S. sanctions on Russia’s financial sector, Andrei Kostin, CEO of VTB, the country’s second-largest lender, told Reuters on Monday.
The rouble weakened by 15% against the dollar after the United States imposed sanctions on Gazprombank on November 22. Gazprombank, a key player in handling Russia’s energy trade with Europe, was a significant supplier of foreign currency to the domestic market.
“In 2022, the dollar reached as high as 120 roubles. A correction is already underway, with the dollar now slightly above 100. I believe it will remain at this level,” Kostin remarked.
He noted that VTB’s exposure to U.S. dollar assets has significantly diminished due to Western sanctions. “Previously, half of our balance sheet was in dollars, making exchange rate movements highly impactful. Now, it hardly matters to us,” Kostin said.
He acknowledged the mixed reactions to the exchange rate adjustment. “Exporters are likely pleased with the recent surge following the latest U.S. Treasury sanctions, while importers are understandably less happy. However, much of this reaction seems emotional,” he added.
