The Moscow Stock Exchange (MOEX) will start trading with the Uzbek sum, Armenian dram and South African Rand today.
The trading platform has stated that it hopes the move will expand the opportunities for professional market participants, including foreign partners. Armenia and Uzbekistan have praised the decision, expressing hope that it will strengthen their respective currencies. As it currently stands, Armenia and South Africa have remained neutral on the Russian invasion of Ukraine, although Uzbekistan has condemned it.
In late March, MOEX reopened, although under heavy restrictions, including bans on trades with multiple currencies. While it didn’t crash as it was widely predicted to, it has seen a 38% year-to-date drop in value. However, the Russian rouble has risen to its highest level since 2015, thanks to record oil and gas revenue.
Expect the MOEX to increase in value, although given its exclusion from major trading platforms, including the Federation of European Securities Exchanges and the London Stock Exchange, it is unlikely to reach last year’s peak. In the longer term, unless the EU successfully implements a gas ban, expect the Russian economy to continue to recover relative to earlier this year, boosted by its emergency spending fund.
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Laurence is an Analyst and weekly contributor to The Daily Brief, he focuses on geopolitical and economic issues occuring in Europe and Eurasia.