Loans listed in Russian rubles look attractive to 21% of European investors
A poll conducted by the P2P platform Robo.cash has revealed that apart from loans listed in euros, European P2P investors show interest in other currencies. Thus, 21% of respondents prefer investing in Russian rubles. This currency is attractive as it has strengthened by 9% against the euro since the beginning of the year. The second most popular national currency among the P2P investors is the British pound (12.9%), the returns on which are slightly higher than in the Eurozone.
Recently, the fully automated P2P platform Robo.cash conducted a poll among European P2P investors. It showed that apart from euros, they willingly invest in loans listed in Russian rubles. This was mentioned by 21% of investors. The second most popular local currency according to the poll is the British pound specified by 12.9% of respondents. The national currency of Bulgaria ranked third winning 9.7% of votes. The fourth place was shared by the Kazakhstani tenge and Czech koruna – each of them was chosen by 8% of respondents.
According to analysts of the company, there are several factors stimulating European investors to look for returns in currencies other than euros. The Eurozone has had negative interest rates for a long time, and the ECB rate is set at -0.4%. Despite the monetary incentives, the returns on the European stock market have been low over the past few years. Therefore, deposits in euros often do not allow to exceed inflation.
Investments in the currencies of developing countries are traditionally popular due to the higher returns. For example, while the ECB rate is set at -0.4%, in Russia it equals +7.25%. The attractiveness of the Russian market is easy to explain. Since the beginning of the year, the ruble has strengthened by 9% against the euro (as of September 3, 2019), and has become one of the most profitable currencies. In addition, Russian assets have also brought rather high profit. Thus, European investors who have invested in Russian currency this year have a double benefit: direct investment income and exchange difference.
With regard to the British pound, which ranked second in the poll, the returns on it are slightly higher than in the Eurozone. The rate of the Bank of England is currently set at +0.75%.