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This 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
by 1ris 5y ago
This 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.