What if your business discovered a new market with 142 million consumers, an appetite for travel, gaming and retail goods and 17 percent growth per year in online retail sales ? And then, imagine these consumers were located in a country that had improved its ‘ease of doing business’ ranking from 124th in 2012, to 28th by 2020.
The Russian ruble is a highly volatile currency
Currency conversion timing might not sound business-critical, but in an unpredictable currency market understanding when funds will be converted is essential for developing effective international pricing. In 2018, the ruble declined by 7 percent in a single day, which brought significant losses to many international players targeting the Russian market. The story has repeated in 2020.
Decline in a single day in 2018 and 2020 which brought losses to many international players targeting the Russian market.
Accepting ruble payments requires a local, operational office and proficiency with managing exposure. Doing business in Russia without local support will require you to identify someone who can convert rubles for you regularly, in order to mitigate foreign exchange risk.