Russians selling off US currency
The Central Bank of Russia says the amount of U.S. dollars held by individual citizens of this country is rapidly declining. The bank says Russians are also moving increasing sums abroad. Moscow correspondent Peter Fedynsky follows the money trail and reports that Russians are gaining confidence in their own economy.
New figures released by the Russian Central Bank indicate the amount of U.S. dollars held by private Russian citizens has dropped since 2002 from billion to less than billion as of July 1.
Denis Rodionov, managing director of the Bright Minds Capital Investment firm in Moscow, says Russians are trading in their dollars for rubles because of uncertainties linked to the American budget deficit and negative balance of trade. Rodionov says the ruble is also becoming a more convenient currency.
Rodionov says that, obviously, the process is lengthy, but the ruble over the past several years has risen against the dollar. In addition, the ruble now pays higher interest on savings.
Another Russian Central Bank report indicates nearly billion were transferred out of the country last year. Russian citizens accounted for 54 percent of that amount. Many of the transfers involve trade, especially with China. Analysts say the flow of capital abroad also reflects efforts by Russians to purchase new technology or to reduce risk through international diversification.
Nonetheless, Anton Struchinevsky, senior economist with Mosocw's Troika-Dialog investment firm, says more money is flowing into Russia than out.
Struchinevksy says that last year the overall influx of capital amounted to about billion. He adds that in the second quarter of this year alone, the influx has exceeded billion.
Foreign migrant workers in Russia constitute another factor in the movement of capital to and from the country. Denis Rodionov says the guest workers from Ukraine, Uzbekistan, Tajikistan and other former Soviet republics create a win-win situation for all of the nations involved.
Rodionov says the cheap labor is needed, given the country's shortage of workers and declining population. At the same time, he adds, other countries get money transfers and the possibility to develop their economies.
Many Russians held so-called under-the-mattress dollars following the Soviet collapse in 1991 and the country's 1998 financial crisis. Analysts say some people continue to hold American currency, because it is psychologically difficult to sell for under 26 rubles, its current value, if somebody paid 30 rubles for it in 2003.1.U.S. dollars held by private Russian citizens has dropped since 2002 from billion to less than billion as of July 1.
1)dollars held by rivate Russian citizens 俄罗斯个人持有的美元
2)drop from billion to less than billion从 从350亿减少到不到120亿美元
2.Russians are trading in their dollars for rubles because of uncertainties linked to the American budget deficit and negative balance of trade.
1) trading in their dollars for ruble 把美元兑换卢布
2)budget deficit 预算赤字
3)negative balance of trade 贸易逆差
3.the process is lengthy 过程是漫长的
4.the ruble over the past several years has risen against the dollar
rise against the dollar : 相对于美元在增值
5.the ruble now pays higher interest on savings : 卢布在存款利息更高
6.Russian citizens accounted for 54 percent of that amount.
account for 占据多大的比例
7.Analysts say the flow of capital abroad also reflects efforts by Russians to purchase new technology or to reduce risk through international diversification.
international diversification: 国际多样化
8. money is flowing into Russia than out.
flow 货币流动
the influx has exceeded billion
influx 货币的流入
9.Foreign migrant workers in Russia constitute another factor in the movement of capital to and from the country.
the movement of the capital to and from the country 资本在这个国家的流入和流出
10.Soviet collaps 苏维埃解体
11. under-the-mattress dollars 私房钱
12. sell for under 26 rubles 一美元兑换不到二十六卢布
