Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.
Currency collapse and capital withdrawal from Russia - Russian media The Moscow Times
A failed mutiny of Wagner PMC under the leadership of Yevgeny Prigozhin, which came as close as 200 km to Moscow, led to serious consequences for the Russian economy. As a result of the rebellion, a large-scale withdrawal of capital from the Russian banking system was observed.
According to the Central Bank of the Russian Federation, foreign currency deposits in Russian banks fell by $9.1bn in June. This led to a drop in the total amount of currency held by individuals and legal entities in the Russian banking system to $152.4bn - a new low since 2008. Experts point out that the sharp decline in foreign currency deposits directly indicates a powerful outflow of capital from the country.
Reduction in the supply of currency was one of the reasons for the collapse of the ruble after Wagner PMC rebellion. The ruble reached new lows since the start of the war, exceeding the mark of 102 rubles per euro and almost 94 rubles per dollar. The Bank of Russia stated in its monthly review that the main reason for the devaluation was a reduction in the supply of currency. The largest exporters also reduced their exchange sales in June by 23%, selling $7bn less than in May.
The situation with capital withdrawal and currency collapse had a negative impact on Russia's balance of payments. According to the data of the Central Bank of Russia, in April-June the country received only $5.4bn of balance of payments surplus, which is 14 times or 93% less than in the same period a year earlier. If we compare it with the first quarter of this year, the economy's notional foreign exchange earnings fell almost threefold.
Analysts attribute the fall in the balance of payments to Russian oil quotations, which continue to remain low. Discounts on Russian oil, which is priced at less than $50 a barrel, have reduced the economy's export earnings by $25bn, according to Goldman Sachs estimates.
Deterioration of the balance of foreign trade also plays a negative role in the Russian economy. Energy sanctions are becoming more significant, while domestic demand for imports is growing. Alexander Isakov, chief Russia economist at Bloomberg Economics, says that this reduces the ability to channel capital to finance infrastructure projects needed to overcome the effects of sanctions. Thus, the Russian authorities and economy find themselves in a quandary.
CEOs aren’t there to pander to the whims of PIs who may be traders or stayers. Their job is to build a company not a share price.
Once the company is a success the share price will follow. As for RNS the reason for the change, i dont remember one in April 22 (from memory)when the share price shot up in a day. No complaints then was there…..
If LD sold any number of shares to fund or maintain a similar number of shares after options then it’s a matter for her.
I assume she would think that she has invested a lifetimes work in the IP and at some point would like to see a return on that work.
Also, there are some you thought better news was coming sooner, me included but rather than sell I chose to add at this price. If it falls further I have some extra cash in hand.
This is AIM and a quick look at the charts will show volatility and risk. Grow a pair or bug out are the only choices on days like yesterday.
RattaB and NTH sitting at their computers with a pile of sticky tissues after the summit today.
Maybe they’re sitting together and thats why the tissues are there.
Still Zalensky is only human and having to make decisions that cost lives of the military may be much more stressful than a grandpa who doesn’t care if any of his troops come home as long as he gets to steal a country.
NATO are clear about entry conditions and the west are helping with what they can. Funding an airforce fleet will be a whole new level of expensive but I’m sure Russia will run out of cash first if not meat for the grinder.
Time is the true arbiter not the sticky keyboard brigade headed up by Commander RazzaBbag and JNorthkorea
This is down based on the dual product plan going forward and the timeline judged against the financial statement.
I don’t normally by these sort of equities as the timelines are longer than the normal AIM gamble but the product looks to have significant upsides in the future so I have significant amounts (for me) in both ISA and SIPP. In fact 10.5p was my top up trigger but I‘ll see where it settles before buying more.
RazzaBbag, but here isn't sending them.
And Russia is using them there in civilian areas. No moral high ground available to you or the invaders….
Surprised Medvi hasn’t started nuke threats again…..
Gun, the big boys and girls normally do deals which mean they sell down in advance. CLNs are a prime example.
The big issue here is Adam Bonds confused himself with James Bond….Adam just saves his bank account, not the world.
RazzaBbag, USA, Ukraine and Russia aren’t signed up to the prohibition.
Besides, Russia have planted so many land mines that the areas where these are likely to be used will need significant munitions removal post war. So 2% of cluster munitions remaining will be the least of Ukraines problems when they kick russia out….
Not really AB, do you think they were going to pay for all this with shirt buttons and good will?
It’s called business and if the results are good enough to warrant moving forward as she said then there must but good data.
M3, this is nothing to do with stock bashing, its a reflection on the economic risk based on rising interest rates, failure to become commercial so far and Bonds personal attempt to drain all available finds via salary and perks…..