The graph below show the US Dollar vs The Russian Rouble over 6 months
The Russian Ruble (or Rouble) is the official currency of the Russian Federation, as well as South Ossetia and Abkhazia. The ruble is subdivided into 100 kopeks (or kopecks, copecks). There is currently no official symbol for the Ruble, though the abbreviation руб. is widely in use, and the country is considering several other possibilities.
The Russian Federation is one of the world’s largest market economies. By nominal GDP, Russia is ranked as the 10th largest economy in the world (6th largest by Purchasing Power Parity). Political stability and increased domestic consumption have driven significant growth since the early 2000s. The average salary increased from $80/month in 2000 to ~$640/month in 2008. Roughly 14% of Russians lived in poverty in 2010 vs. nearly 40% in 1999. Oil, natural gasoline, timber, and precious metals represent ~80% of exported goods. Agricultural products is also a major export &mdash Russia is the third largest grain exporter globally, behind only the United States and European Union.
The Ruble has been the official currency of Russia for nearly 500 years. The kopek was first introduced in 1710, with a value of 1/100th of a Ruble. In December, 1885, the Russian Ruble was revalued to a gold standard, pegged to the French Franc at 1 Ruble = 4 Francs. This value was revised in 1897 to 1 Ruble = 2 2/3 Francs. During World War I, the gold standard was dropped leading to devaluation of the Ruble and hyperinflation. The “second Ruble” was introduced on January 1, 1922, followed by the “third Ruble” in January 1923. The “fourth Ruble” (or “Gold Ruble”) was issued in March, 1924. Following World War II, the “fifth Ruble” was introduced in 1947, in order to revalue the currency and reduce the amount of paper tender in circulation. The introduction of the “sixth Ruble” occurred in 1967, under a similar process to the “fifth Ruble” issue. The “sixth Ruble” remained the official currency of Russia during the transition from the Soviet Union to the modern Russian Federation, though new notes were issued in 1993 to reflect the change. The “seventh Ruble” was issued on January 1, 1998, essentially devaluing the Russian Ruble at a rate of 1 new Ruble = 1,000 old Rubles.
Another month, guess what, take a lucky guess, it is the same old story, HM Government, spends more money than it receives via taxes and duties. Now we are in a Covid 19 world. UK’s HM Government needs to fund many new demands. [www.dmo.gov.uk]
Another deficit month, thus to bridge the gap, needs to borrow on the bond market In February 2022, the HM Government had to borrow money to meet the difference between tax revenues and public sector expenditure. The term for this is The PSNCR: The Public Sector Net Cash Requirement. There were only 1 auctions of Gilts (UK Government Bonds) by the UK Debt Management Office to raise cash for HM Treasury:-
15-Feb-2022 1% Treasury Gilt 2032 2,250.0000 Million
£2,250.0000 Million = £2.2500000 Billion
On another way of looking at it, is in the 28 days in February 2022, HM Government borrowed:- £80.357142857142857142857142857143 Million each day for the 28 days.
We are fortunate, while the global banking and financial markets still has the confidence in HM Government to buy the Gilts (Lend money to the UK), the budget deficit keeps rising. What is also alarming, is the dates these bond mature in 2032. All long term borrowings, we are mortgaging our futures, but at least “We Are In It Together……“
The NB Global Monthly Income Fund Limited aims to provide its shareholders with consistent levels of monthly income, while maintaining or increasing the Net Asset Value per Share over time. The Fund’s managers seek to achieve this strategy by investing in a broad range of credit assets, including but not limited to high yield and investment grade bonds and alternative credit comprising of private debt, special situations and CLO debt tranches.
ASSET ALLOCATION % Private Debt, 22.15% Special Situations, 4.60% CLO Debt Tranches, 11.43% Global High Yield, 26.14% Global Floating Rate Loans, 35.68%
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. With appropriate firming in the stance of monetary policy, the Committee expects inflation to return to its 2 percent objective and the labor market to remain strong. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, the Committee expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting.”
The company aims to maximise total return to shareholders from a diversified portfolio of investments primarily in quoted Russian securities or other companies which operate principally in Russia. The company may also invest up to 10% of its gross assets in companies that operate or are located in former Soviet Union Republics.
TOP 10 Sector % of assets of the fund.
Gazprom ADR Energy 20.5% of fund Lukoil Energy 13.1% of fund Sberbank of Russia Financials 13.1% of fund Novatek GDR Energy 6.8% of fund Rosneft GDR Energy 6.5% of fund Norilsk Nickel Materials 4.7% of fund VTB Bank Financials 2.8% of fund Magnit Consumer Staples 2.8% of fund Halyk Bank Financials 2.6% of fund Severstal Materials 2.5% of fund
UK shale gas stocks IGas Energy Plc (AIM:IGAS) have seen their shareprices rise in recent days as the UK government rethinks its position on fracking, which could unlock domestic gas resources unlocked to ease dependence on Russian imports.
IGas has a portfolio of six licences across the east midlands, in a geological area known as the Gainsborough Trough.
A revival amidst the energy crisis and 2022’s geopolitical crises could spark a turnaround for these practically dismissed projects.
One can see the price in the past 3 years, has climbed from $1200 to $1990.
One non-metallic property of gold (Au) is that it can be used as a hedge against rising prices, thus inflation.
And in these politically uncertain times, and when there is huge inflation in the economy, labour shortages, and potential labour shortages, commodity shortages, such as crude oil, Gold holds its value and rises again a back drop of rising inflation
The investment objective is to deliver superior long-term capital appreciation from investments in life science businesses, leading long-only and alternative investment funds and managed accounts across multiple asset classes. The Company will target an IRR per share across its investment portfolio of 15% p.a. over the long term. Over time, it is intended that the Company should invest the significant majority of its assets in Life Science Investments.
Russia’s largest lender Sberbank is quitting almost all European markets, blaming big cash outflows and threats to its staff and property following Russia’s invasion of Ukraine and Western sanctions. The move seemed inevitable after the European Central Bank (ECB) ordered the closure of the bank’s European arm, having warned it faced failure because of a run on deposits sparked by the invasion, which Moscow calls a “special operation.”
The bank said it was no longer able to supply liquidity to European subsidiaries following an order from Russia’s central bank, which is seeking to preserve foreign currency. But it said capital and assets were sufficient to pay all depositors. The move highlights the pressure some Russian businesses are facing from unprecedented steps by the West to isolate Moscow, including sanctions on its central bank and the exclusion of some of its banks from global payments system SWIFT.