Published at 02:43 (GMT) 25 Mar
FT: The Russian government is braced for the country's capital outflows to soar to $70bn in the first 3 months of the year as investors seek cover from the fallout of President Vladimir Putin's Ukrainian land grab.
Russia's deputy economy minister Andrei Klepach said that capital outflows in the first quarter were expected to be closer to the top end of a $65bn-$70bn government estimate, as fears of tighter sanctions hit the economy. That would exceed the $63bn that flowed out of the country in the whole of last year and is higher than the $50bn figure mooted by Mr Putin's economic adviser Alexei Kudrin 10 days ago.
On FX, some focus on the outflows and also intervention by CBR to support RUB, vs the basket. Eye the quantum of outflow - and impact on Russia and other East European markets. Good to watch. USD/RUB level at 36.08-10. EUR/CHF at 1.2185-90. Could see demand for CHF and USD, GBP, EUR given the outflows. EUR/CHF traded range of 1.2181 to 1.2203. Offers at 1.2210-20, bids at 1.2150-60, Weighed and capped by concerns over Ukraine/Crimea, Russia. USD/CHF at 0.8806-10, offers 0.8830-50, bids at 0.8750-60. eye Swiss, Zurich, Sing bids on dips. And any SNB rumours, as SNB continues to watch EUR/CHF 24 hours. Out of Basel and Singapore branch. WL
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