Friday, January 22, 2016

UPDATE 1-Russia's Sberbank sees slightly higher forex demand as rouble slides

(Adds details, quotes, context)

Jan 22 Russia's largest bank, Sberbank, has noticed slightly higher demand for foreign currency as the rouble weakens, its chief executive told reporters on Friday.

The Russian rouble gained on Friday from Thursday's record low of 86 roubles to the dollar.

"There is increased demand (for forex), but by our measures it is not a lot," Sberbank CEO German Gref said on the sidelines of the World Economic Forum meeting in the Swiss resort of Davos. The bank has "a sufficient store of dollar and rouble liquidity," he said.

The rouble's fall threatens more difficulties for Russians, prompting some of them to stock up on dollars as the Kremlin denied the currency was collapsing. The governor of Russia's central bank, Elvira Nabiullina, cancelled her visit to Davos .

Nabiullina said on Friday the central bank had enough tools to prevent threats to financial stability.

Besides the damage to people's incomes and the effect on inflation, a weakening rouble reduces the purchasing power of Russian companies that rely on Western technology, Gref also said in Davos.

Russia's economy is expected to shrink by 2.2 percent in 2016 if price averages $35 per barrel, Sberbank said on Thursday . Brent crude oil, a global benchmark for Russia's main export, was up 5.8 percent at $30.9 a barrel. It had fallen below $28 a barrel on Thursday, reaching 12-year lows. (Reporting by Dmitry Zhdannikov; writing by Alexander Winning and Polina Devitt; editing by Christian Lowe[1] and Larry King)

References

  1. ^ Christian Lowe (blogs.reuters.com)

UPDATE 1-Russia's Sberbank sees slightly higher forex demand as rouble slides Rating: 4.5 Posted by: Unknown

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