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Weirdly it's recovered about half of the losses from this morning (went from 83 RUB/dollar, up to 110 RUB/dollar and back at 100RUB/dollar).
by smcl 5y ago
Weirdly it's recovered about half of the losses from this morning (went from 83 RUB/dollar, up to 110 RUB/dollar and back at 100RUB/dollar).
- jacquesm 5y agoThat will stop at some point and then the bottom will really fall out. There is only so much sink capacity for a weak currency like the Ruble always was.
- HWR_14 5y agoI would guess it's being buoyed by people who think the upcoming peace talks will let Putin skate away without long term damage to Russia. Either that, or oligarchs are moving hidden assets back to Russia. Either because they worry they will he discovered or to take advantage of the falling Ruble to buy the other half of the country. Or maybe it's because the market of people buying rubles is really thin right now, and this is an attempt by the Russian government to manipulate the price and public opinion.
- 1ris 5y agoThis is because the russian central bank is buying rubels for dollar and other currencies. European Union tries to prevent that by freezing the foreign reserves. We will see how this will play out and when and if they burn throu their pile of dollars. But this exchange rate has become pretty meaningless. Hardly anybody is either willing or allowed to give you USD for your RUB. If you own russian stock you are currently unable to sell it for rubels anyway. This currency is on it's way to non-convertible status.
- smcl 5y agoAhhhh yeah, so the same thing the UK did during our own currency squeeze in the 80s
- guerrilla 5y agoDo you have a source for that or do you just suspect that's what they're doing? A lot of people predicted they would do that, but the only move I've heard is the doubling of the interest rate [1]. 1. https://pbs.twimg.com/media/FMrpSp-XMAEiO3c?format=png&name=medium https://pbs.twimg.com/media/FMrpSp-XMAEiO3c?format=png&name=...
- 1ris 5y agoSorry no. As it turns out this might have incorrect. /edit: Since this happens russia banned the transfer of foreign currencies. This is a massive step towards the rubel being non-convertible. I think that means that russia effectively defaults on almost all debt. But while I think so, but no body else mentions it, so I probably did overlook something.
- guerrilla 5y agoThey updated what they said to clarify: They're only banning new loans, not repayment of old ones.
- guerrilla 5y agoYeah, the recovery corresponds to moving the central banks key interest rate from 9.5% to 20% which was apparently sufficient to encourage saving. That's what Bloomberg says on air anyway.