Posted on 12/24/2014 5:35:30 AM PST by Olog-hai
Russia’s central bank on Wednesday launched another initiative to shore up the ruble, offering hard currency loans to help companies and banks service their debts.
Stabilizing the ruble, which is one of the world’s worst-performing currencies this year following the slide in oil prices and the sanctions imposed on Russia for its involvement in Ukraine, is a priority for Russia’s monetary authorities.
Russia’s largest lender, Sberbank, admitted again that it faced a run last week when the ruble was in freefall and individuals fretted over the value of their deposits. Its chairman, Alexander Torbakhov, conceded to Russian news agencies that the bank was “ready for a new wave of panic.” In an attempt to manage the financial impact, the bank raised the rates being offered on deposits and mortgages. …
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Seems like a shell game is going on in Russia. One story I read is the state controlled companies are being ordered to dump their $/Euro accounts for rubles. That would indicate the Central Bank is worried about running our of reserves to defend the ruble. Now this article is the exact opposite with the Central Bank injecting hard currency reserves into the banking system.
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