Currency Brokers: The Russian Ruble Is Hereby Halted Until Further Notice

Zero Hedge ^ | 12/16/2014 | Tyler Durden

[SeekAndFind]

Earlier, we reported that various currency brokers such as FXCM and FxPro, would - as a result of the soaring liquidity in the USDRUB pair - suspend trading in the Russian Ruble (while other merely hiked margins to ridiculous levels). It appears things have escalated again, and as FXCM just reported, instead of just politely advising clients not to open new USDRUB position tomorrow, it has advised anyone long, or short, the USDRUB that their positions will be forcibly shut in moments.

So for those curious why there appears to be a collapse in Ruble volatility in the past few hours which in turn has sent both stocks and crude soaring, the answer is simple: nobody is trading it!

And this is what happened following the post: as soon as all those short the RUB (long USDRUB) realized they have to take profits, the USDRUB tumbled some 500 pips (!) in the process sending stocks surging.

h/t @Paul_Courtney

[SeekAndFind]

As The Financial Times reports,

Russians hurried to change their savings and pensions into dollars and euros while also stocking up on furniture and jewellery as the rouble’s collapse accelerated.

 

Their mounting concern was reflected on Tuesday morning in the red lights of the currency exchange booths that dot the city, which were ticking over to show ever weaker rouble rates.

 

...

 

“I took out some of my pension and I want to change it into dollars,” said Galina, a retiree, who declined to give her surname. “None of us know what’s happening. We’re all worried that the currency will keep falling.”

 

The dramatic collapse in the rouble in recent days has not triggered outright panic, but it has prompted a rush to change currency and to stock up on durable goods such as furniture, cars and jewellery before they become even more expensive.

 

...

 

"I think the rouble will carry on falling until the end of the year,” she said. “It’s time to buy furniture!”

 

Indeed, shoppers reported enormous queues even at 2am in Ikea on Monday night as people rushed to stock up before the rouble plunge triggered price rises. The Swedish furniture company had said it would be raising prices from Thursday.

 

...

 

"People who didn’t manage to exchange their money at 35 roubles or 40 roubles to the dollar have been buying up high-end goods, cars and apartments because a massive repricing hasn’t happened yet,” said Vyacheslav Trapeznikov, acting director of the Urals Builders’ Guild, in Yekaterinburg.

 

Car sales in Russia rose in November from the previous month — in spite of a slowing economy — and December is “rather promising”, according to the Association of European Businesses in Russia trade group. “Retail demand has been extraordinary in recent weeks,” said Joerg Schreiber of the AEB.

 

...

 

“People are trying to spend their last roubles and buy up things that haven’t been priced, but this trend has an expiration date,” Mr Trapeznikov said.

Russians are lining up at currency exchange centers to swap their increasingly worthless Rubles for Dollars...

[2harddrive]

TREMENDOUS volatility in today’s US stock market!

[molson209]

until the Rubble can be cleared away . Venezuela needs toilet paper ,just saying

[justa-hairyape]

World War III has begun. How many millions will the Europeans kill this time ?

[SeekAndFind]

[SeekAndFind]

pic.twitter.com/E52gefmevt

— Not Jim Cramer (@Not_Jim_Cramer) December 16, 2014

 

[SkyDancer]

If the Ruble is going down why are crude prices rising? Is that in Russia or in the commodities market??

[redreno]

Pootie-Poot & friends ain’t laughing now.

[Stentor]

Gee Whiz. Maybe we’ll get 2008 for Christmas.

[Berlin_Freeper]

MOSCOW: The official exchange rate was still in the 60s, and the sign on the currency exchange kiosk’s door said there were U.S. dollars on sale at 80 rubles. The woman at the window wanted 85.

[PghBaldy]

I read this on a wacky conspiracy site I read, wasn’t sure if it is true, then saw it in some mainstream sources. Apple today stopped online sales in Russia because of the ruble distress.

[drypowder]

Hey Mr. Putin, it's the Rockefellers and the Rothschilds whom you should seek for revenge, not the American people

[Berlin_Freeper]

Apple closes online store in Russia as ruble tumbles

[MeganC]

World War III has begun. How many millions will the Europeans kill this time ?

Are you recommending investments in rubble futures?

[drypowder]

world currencies must fail and the people must suffer severely and they will then accept the NWO of one government and one currency to stabilize society (paraphrasing from a David Rockefeller interview).

Indicators ($18 trillion debt and truthful economists) point to the US dollars turn will be soon.

[reg45]

Make the conversion easy 100 rubles per US dollar.

[Faith65]

bfl

[Usagi_yo]

It’s not good news. This will effect us. Cornering Putin may not be a good idea.

[veracious]

I wonder if the _Reserve_ system is tossing around scores of hundred billion dollars to drive this chaos. Got to save the _Reserve_ game somehow...?