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That is not correct again. $150B of the reservers were NOT spent on supporting ruble, but were allocated on supporting banking system and restructuring loans Ru
by ruslan 18y ago
That is not correct again. $150B of the reservers were NOT spent on supporting ruble, but were allocated on supporting banking system and restructuring loans Russian companies borrowed from foreign institutions. But you are right, this was bad move, cause banks took rubles from the gov and instantly turned them into dollars thus harming ruble even more. Putin never supported stock market cause it is (and was) close to non-existant. Russian economy so loosely depend on stock market that even if it goes void noone ever notices that. :-)
- earl 18y agoI strongly disagree. Russia made major purchases to support the Ruble. Viz January '09: Russia spends $30B in a week http://www.bloomberg.com/apps/news?pid=20601087&sid=aalw.8ABkiPs&refer=home http://www.bloomberg.com/apps/news?pid=20601087&sid=aalw... $40B sold in Oct, keeping ruble in desired band http://russiatooat.blogspot.com/2008/11/massive-foreign-reserves-outflow-puts.html http://russiatooat.blogspot.com/2008/11/massive-foreign-rese... further discussion of selling to support Ruble http://www.cnbc.com/id/29099569 http://www.cnbc.com/id/29099569 That's not to say that Russian hasn't spent hundreds of billions also on loans, and even more billions on loss of FDI and declaring financial war on foreign owned companies. But my point holds. In any case, I wish Russians the best of luck; they were almost uniformly kind to me when I lived there. But I think the probability that Russia avoids another governmental crisis is shrinking.