Market experts expect a rise in export sales
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Posted on 12/12/2014 4:43:59 AM PST by elhombrelibre
The Russian ruble fell below 57 to the dollar in trading on December 12, continuing a slide that has cut its value nearly in half this year.
The ruble's value against the dollar and the euro has continued to decline despite Russia's effort to shore it up by raising a key interest rate by one percentage point on December 11, the fifth increase this year.
The ruble was trading at about 57.31 to the dollar at midday on the Moscow exchange and later fell below 57.5.
One euro was buying more than 71 rubles.
The Russian central bank raised its key interest rate from 9.5 percent to 10.5 percent on December 11 -- and almost double the rate of 5.5 percent in March, when President Vladimir Putin set off a tense confrontation with the West by annexing Crimea from Ukraine.
The ruble and Russia's energy-reliant economy have been battered for months by falling world oil prices and sanctions imposed by the United States, the European Union, and other nations over Moscow's seizure of Crimea and its support for pro-Russian separatists fighting government forces in eastern Ukraine.
The central bank said it would continue to raise its key rate "in the case of further aggravation of inflation risks."
Andrei Klepach, deputy CEO of Russia's Vnesheconombank, said the rate hike was unlikely to help the ruble but would have "a negative impact on the economy."
Klepach said that "rates are already quite high and therefore one percentage point changes little."
Some investors said the central bank intervened on December 12 to avert a steeper decline.
http://www.marketwatch.com/story/european-stocks-russian-ruble-sell-off-as-oil-prices-remain-under-pressure-2014-12-12
Imagine how low it would be if we didn’t have Obama’s economy.
I remember back in the early nineties shortly after the fall of the Soviet Union, they were using shredded rubles as insulation.
The sanctions and the fallout from the oil market will do it’s damage to Putin’s Russia. He will eventually have to pull out from the Crimea. I wonder if the Russian people still love Putin. I’m sure they are blaming all of their problems on the evil west (i.e. United States), but deep down, the smart ones know that they have to give in and pull out and save their economy. Even the lifting of the sanctions is not going to save them with the way oil prices are dropping.
How true. This is all despite the bumbling Obama; he gets zero credit for the oil boom. Indeed, if he had his way enforced penury of the American people would be pursued pursuant to the chic policies of preventing global warming.
um.. not going to happen. There is as much chance of Russia pulling out of Crimea as the US pulling out of Texas. Ain’t going to happen.
Eventually the west will relent, watch and see.
Your point being that Putin’s done his work of harming Ukraine, too, or what?
Actually, the US has pulled out of Austin.
I was there. In the mid 80s 50,000 rubles was worth about $15,000. When I was there in the 90s a 50,000 ruble bill might get you dinner at McDonalds. Yes, they had McDonalds by then. Arguably the most popular restaurant in Russia.
Also, Russia reportedly has been moving their big guns back to Russia. Those over 100MM. Both sides in dire economic straits. Both have possible turmoil ahead from their respective citizenry. And winter is coming....
The Russian people are reaping what they have sown. They let these thugs take over their govt and nation, and cheered as they robbed, plundered, raped and invaded other nations.
And the world tippy toes around Russia’s evil aggression because this gang of thugs has nukes.
Russia is nothing but a third-world gas station with an army.
You know what this means, of course -- TOTAL COLLAPSE OF THE US DOLLAR!!! Oh, sorry. ;')
global warming.
It is Gore Bull Warming.
Market experts expect a rise in export sales
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Prostitutes there are fast switching to USD or Euro
for their russian customers....
And now, a lot of foodstuff has to be paid in USD
like it happened in 1998..........
Ain’t free enterprise great............
Prostitutes there are fast switching to USD or Euro
for their russian customers....
And now, a lot of foodstuff has to be paid in USD
like it happened in 1998..........
Ain’t free enterprise great............
And it couldn’t happen to a nicer bunch of A-Holes!!
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