Russian aggression – collapse of the ruble – JPMorgan does not advise investing in the ruble

Photo: рбк

Analysts at US bank JPMorgan Chase & Co. It is no longer recommended for customers Long investments in the Russian ruble amid escalating tensions over Ukraine.

This was mentioned by Bloomberg.

It is noteworthy that the ruble has already lost more than 5% this month, which is the highest among emerging markets.

“The rapid devaluation of the currency prompted the Central Bank to suspend regular purchases of foreign currency to avoid any additional pressure on the Russian currency,” the newspaper said.

“We cannot dismiss negative scenarios with high confidence,” strategists Anizka Khristova and Michael Harrison wrote in a January 24 note.

in a JPMorgan also acknowledged that it had previously underestimated risk and lost such investments as a result.

“A stable bond rally is likely to require a reduction in geopolitical uncertainty and clearer signs that inflation has peaked,” analysts said.

they added it Now the ruble is undervalued by an average of 13%.

We will mention:

Against the background of the collapse of the ruble for at least more than a year, the Central Bank of the Russian Federation announced the suspension of currency purchases under the budget regulation.

Read also: There is no aggravation, but the Ukrainians already have to pay: How much are Putin’s threats to the country

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