Russia is prepared for a currency war

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Photo: Viktor Korotayev / Kommersant

The head of the Bank of Russia Elvira Nabiullina admits that a trade war may grow into currency in the event of adverse developments in the global economy. This opinion she expressed during a speech in the state Duma, reports “Rosbalt”.

“The massive capital inflows that were observed in past years in the world when developed countries were an unprecedented soft policy, may be replaced by a period of equally entertaining and long-lasting capital outflow,” — said the head of the regulator, noting that will be the first emerging markets, including Russia.

Elvira accuses the risks for the Russian and other economies, US and China, which unleashed in 2018 trade war: “the Introduction of mutual protectionist barriers between the major economies — all this has a negative impact on global trade and creates a threat to sustainable global growth.”

Trade confrontation, according to Nabiullina, can derail stock markets hurt the world economy, slowing its growth, and also lead to a new round of confrontation, which will result in a currency war.

Impacts of trade conflicts and policies in global stock markets is being felt in recent weeks, world oil prices fell nearly $ 10, which caused serious concerns among traders, who fear a repeat of 2014, when a couple of months, oil prices have fallen by half.

Video, photo All from Russia.

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