The month of December concludes a record setting year for the Russian forex marketplace
The FX market turnover on the Moscow Exchange has staged an impressive rebound to conclude a record setting year in terms of forex volumes. The month of December ended the year deep in the green marking a rise by 37% on the month of November to RUB 16.9 trillion (just above $500 billion) which is an all-time record for the exchange.
The substantial rise in volumes might be a function of Russian Holidays during the month of December being practically non-existent. The country celebrates Christmas according to the orthodox calendar and festivities are held in the first week of January. Companies probably rushed to conclude operations for the year-end which resulted in this massive volumes spike. Expect the month of January to be way slower.
The trend has been quite positive for the whole year on the Russian FX volumes front, future flows will remain boosted by the commitment of the government to introduce a free floating Russian currency and hence permit the central bank to start explicitly targeting inflation figures.