The Sochi 2014 Winter Olympics have already greatly affected everyday life of the Russians. Whatever print media your read, you feel the taste of the upcoming Games. The Russian ruble rate could not stay away from this universal sports event. The analysts of one reputable international rating agency are of the opinion that the Sochi Olympics are going to lift not just the patriotic spirit of the locals, but also the national currency rate. The chief executive officer of the Russian financial corporation ALOR Sergey Khestanov has no doubts that the closer the Olympics get, the higher rate the ruble will demonstrate. An independent consumer analyst Andrei Verkholantsev said that the beginning of year is historically successful period for the Russian ruble. Besides, the foreign currency inflow to the country during the Olympics might strengthen the ruble. Despite the promising forecasts, the ruble rate to the basket hit the five-year low. Some economists are sure that there is no reason for a further decline, especially considering the psychological barrier. There is a popular belief that as soon as USD/RUR and EUR/RUR hover above the levels of 34 rubles and 46 rubles correspondingly, that sparks a psychologically tough situation in the country. The subdued budget deficit, positive balance of payments and large foreign exchange reserves: all that supports the Russian currency. Anton Tokmakov, the head of the conversion operations department of the Absolut Bank, believes that the ruble will be underpinned by the tax payments. “The severance tax, for example, was due on January 27. By this date, the exporters are supposed to sell currencies totaling 200 billion rubles.” That was the Q1 forecast. Looking ahead, by the end of the year, specialists expect the USD/RUR pair to jump to the level of 38 rubles.
