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That's just wishful thinking. When ruble fell in the beginning of war, Russian Central Bank swiftly reversed the trend by mandating that all foreign currency r
by protomolecule 2y ago
That's just wishful thinking.
When ruble fell in the beginning of war, Russian Central Bank swiftly reversed the trend by mandating that all foreign currency received by exporters must be almost immediately sold at the foreign currency exchange. Soon ruble rose by more than 50%.
In about a year these restrictions were gradually relaxed and ruble slowly fell again.
Right now Russian government can reinstate these restrictions but chooses not to.
Better fill the budget from export revenue than to print money. In the former case only the consumers of imported goods are suffering, in the latter -- everybody as the result of two digit inflation.
- Arnt 2y agoI think central banks generally give advance notice of policy changes. The Russian one hasn't announced any policy change related to the current fall, has it?
- protomolecule 2y agoAnd it hasn't changed it. The Central Bank just isn't interfering in what's happening on the foreign exchange market. Well, it actually changed the policy a little bit a few hours ago -- it announced that it stopped buying foreign currency until the end of the year[0] to reduce the pressure on the ruble. I guess that means that it doesn't want the ruble to fall below 110 rubles per dollar. [0] https://www.cbr.ru/press/event/?id=23190 https://www.cbr.ru/press/event/?id=23190
- prmph 2y agoBeing able to take unusual and drastic actions to prop up a currency does not mean that the economic malaise indicated by the falling currency has been fixed.
- protomolecule 2y agoNot taking these actions means that the Central Bank don't think is a malaise worth fixing.
- prmph 2y agoThey've now taken action
- protomolecule 2y agohttps://news.ycombinator.com/item?id=42257593 https://news.ycombinator.com/item?id=42257593