No reason to dump dollars despite technical default risk - Ulyukayev
MOSCOW. July 11 (Interfax) - A U.S. technical default could cause the value of the dollar to fluctuate, but private individuals should not rush to alter their foreign currency holdings, Central Bank First Deputy Chairman Alexei Ulyukayev said on Ekho Moskvy radio.
"It definitely might [effect the dollar exchange rate], but the question is, for how long? There might be a shift in the exchange rate, but the people who start dumping their dollar assets and moving into euro or yen assets right after they hear about it are going to lose," he said.
"A simple rule is that non-professional investors should not run around altering the structure of their portfolio after reading read something in the newspaper or hearing it on Ekho Moskvy," he said.
"You will definitely lose, and professional investors will make a little money off you," he said.
Ulyukayev does not believe the U.S. will allow a technical default to happen. "We are not worried because firstly this is impossible and secondly because a technical fault would not have vital consequences to the value of the securities, their yields. It will cause fluctuations, but not vital consequences," he said.
