Posted on 10/03/2014 4:07:27 AM PDT by WhiskeyX
Continuing this year's precipitous descent, Russia's ruble weakened to below 44.4 against the dollar-euro currency basket on Friday, crossing the threshold past which the Central Bank has committed to buying unlimited amounts of rubles to defend it.
Having plummeted 6 percent against the basket in September, the ruble first entered the intervention zone on Oct. 1, forcing the Central Bank to spend some $4 million to halt its decline.
(Excerpt) Read more at themoscowtimes.com ...
What do you make of this?
The sanctions are exacerbating Russia’s already faltering economy.
Agreed
A 6% drop in currency value and $4M USD to counter it ... that seems like a pretty dinky amount of intervention. The ‘official’ ruble based economy must be fairly small.
Economics was Russia’s Achilles Heel under Reagan, and apparently it is still so today.
Agreed, but the RCB has plenty of USD reserves to prop up the ruble and economy. It become a matter of time.
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