16 Dec 2014
Fear of capital controls from Russia - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted that many fear that capital controls may be the next step for Russia.
Key Quotes:
Although many investment managers reduced exposure to Russia as of the end of September, Russia's total external foreign debt stood near $680 bln."
"Despite Putin's talk about wanting to seek alternative to the dollar and Russia’s willingness to accept yuan for its oil sold to China, around two-thirds of its hard currency debt is thought to be denominated in US dollars. The price of insurance via five-year credit default swaps is now near 580 bp, more than double the price as of the end of October. It is the highest since 2009."
Key Quotes:
Although many investment managers reduced exposure to Russia as of the end of September, Russia's total external foreign debt stood near $680 bln."
"Despite Putin's talk about wanting to seek alternative to the dollar and Russia’s willingness to accept yuan for its oil sold to China, around two-thirds of its hard currency debt is thought to be denominated in US dollars. The price of insurance via five-year credit default swaps is now near 580 bp, more than double the price as of the end of October. It is the highest since 2009."