47

Many people make money doing this kind of thing. Many more people lose money doing this kind of thing. You're basically making a bet that the market is wrong. What makes you believe that this particular currency will increase in value compared to your home currency? The other problem with this kind of bet is that it's expensive. You will need at least ...


32

What you are describing is a speculation. Particularly, a long-term speculation. You propose to place a bet that: Your particular view of the fundamentals is correct (which it might be) Whatever shorter-term dislocations that cause major market players to price the ruble differently from how they otherwise would are bound to change within your investment ...


17

You could of course request payment in EUR or USD, maybe keep a PayPal account and just leave the funds in PayPal unless you need to withdraw the money in local currency? Either currency would be fine because the problem you are trying to overcome is the instability in the ruble. EUR and USD both accomplish that. If you can get local clients to pay in EUR ...


15

Currency trading is basically a zero-sum game. You're betting against the experts that play the game. Why do you think you're better than they are? Especially with the overhead costs you must deal with, being average still means you lose.


8

Risk, reward, return, etc. If the economy is "bound to recover", then sure, invest in it, and reap the reward. But there are market forces at play here too. Additionally, when you say "bound to recover", can you say that with real certainty? You are not the smartest kid on the block, though you may be willing to take the most risk. When people invest, or ...


6

Asset diversification If you have significant assets, such as a large deposit, then diversification of risks such as currency risk is good practice - there are many good options, but keeping 100% of it in roubles is definitely not a good idea, nor is keeping 100% of it in a single foreign currency. Of course, it would be much more beneficial to have done ...


5

What's naive is believing that the current political situation is the only thing that has caused the currency go down guaranteed to be resolved in a way that is positive for the currency Oh, and that you're the only person who's thought about long-term developments in regard to exchange rates. Companies which use rubles only because it's necessary to ...


4

Alternatively, just buy oil-based stocks/funds (commodities). The reasoning goes something like this. Russia is a predominantly oil-based economy (very large producer and supplies Europe). If you buy the underlying commodity at your local exchange, some benefits/risks accrue to you: - You avoid the currency risk (the ruble may still fall, you don't care)....


3

I can give you some practical experience-based information regarding the Russian ruble and buying low (hoping to sell high). I think that to some extent this would be applicable on a broader scale. In 1998-1999 this currency took a massive hit and dropped to about 50 rubles per dollar. By about 2004 it has "recovered" to about 30 rubles per dollar. While it ...


3

You could do nothing for a while longer. Foreign exchange simply means your services are cheaper and imports and more expensive, local transactions are otherwise unaffected. Your main worry is whether the government's attempts to revert these issues will create inflation within Russia. Local clients will likely not care to pay you in Euros, Dollars, or ...


3

Avoid exchanging in airports, hotels and other typical tourist locations as you get much worse rates (this is true not only in Russia). Only banks can run currency exchange operations in Russia. Find any regular bank outlet and exchange there. Euros are as common as USD, thus there won't be any problems. Be prepared that no one will speak English or any ...


3

From a guy (myself) who made/saved some money recently using a USD-RUB currency exchange: What you propose is most likely a bad idea. The way I see it, the ruble will eventually get back up once the political situation around it is resolved. I don't see that. I don't believe it will return to the past level. The currency was devalued. Just look at ...


3

Is there a reason why someone shouldn't buy into a temporarily cheap currency of an otherwise solid economy? If you observe the last year's worth of data on the exchange rate between the ruble and most other currencies, you'll find that all the big currencies show the same fall in value of the Ruble. Assuming it's a stable economy, or that the economy will ...


2

The ruble was, is and will be very unstable because of unstable political situation in Russia and the economy strongly dependent of the export of raw resources. What you can do? I assume, you want to minimize risk. The best way to achieve that is to make your savings in some stable currency. Euro and Swiss Franc are currently very stable currencies, so ...


2

You will lose ! @Loren Pechtel says: "You're betting against the experts". It is a great underestimation of the situation. As for rubles, you are betting against false players, as Putin and his gang. They are playing on the stock market and they are news makers and they actively use they political and economical steps for stock play. For example, the ...


2

There are two components to this - the currency conversion and the transfer between your two accounts. If you just do the transfer, the banks will do the currency conversion for you, though not without fees and not necessarily at as good a rate as you could get elsewhere. If you use another service to do the currency conversion, you will need to transfer ...


1

The answer depends on the timescale. As you can see here, the ruble has lost against the Euro on a ten-year scale, but it went up during the last three months. I would characterize this as a recovery from a short drop three months ago.


1

After reading your question title, I'd tend to asnwer, it's worth trying. But the body doesn't match. Russia is not 'otherwise solid economy'. It's the economy based on the raw resources, and in the context of unstable political situation. The main reason the investors are running away from countries in such political situation is they fear to loose ...


1

Yes, there is a reason to not do what you propose. It is the same reason that lies behind any rational decision to avoid any investment opportunity: if the expected return on the investment (ROI) is less than the expected ROI of any other opportunity. And there are thousands of other opportunities available at any time. You mention, for example, that you ...


1

Bitcoins are very liquid. They can be sold or spent very easily. And you don't depend on the banks being solvent to keep your Bitcoin funds, since you can keep them yourself in an offline wallet. I'm not sure what's the legality of Bitcoin in Russia, though.


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