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Russian Ruble Smashed Into Pieces
Pravda
Russia’s Central Bank raised its key interest rate sharply from 10,5% to 17% on 16 December. A message posted on the website of the financial regulator says that “the decision was made due to the need to significantly restrict devaluation and inflation risks.”
In the morning of December 16, playing a key rate increase, the dollar went nearly six rubles down to 58.59 rubles, and the euro slipped to 72.9 rubles, RIA Novosti reports. However, by noon of the same day, the dollar reached almost 65 rubles, the euro climbed to 81 rubles, and the ruble has thus completely lost the growth that it had showed after the Central Bank of Russia raised the key interest rate. Afterwards, the rate of the US currency went up to 69 rubles per one dollar after Brent oil dropped below the level of $60 per barrel.
The decision from the Central Bank was a reaction to the events of “Black Monday,” when, on December 15, the ruble fell by almost ten percent in one day. Until that day, the Russian ruble was second only to the Ukrainian hryvnia in terms of the devaluation pace. Since the beginning of 2014, the ruble has lost about 40% of its value in dollar terms, while the hryvnia – 46%.
Some experts believe that the decision of the Russian Central Bank symbolizes the move to rescue the financial system of the country to the detriment of the economic growth. The first priority today is not economy per se, but the efforts that can stop the collapse of the Russian ruble.
Russia sees another “Black Monday” as ruble collapses
After the collapse on Monday, December 15, the loss of the ruble since the beginning of the year has amounted to about 48%, which made the Russian currency the leader of the world decline. Following the trading on Monday, the dollar and the euro soared up 5.3 and 6.1 rubles respectively, the Kommersant said. The Russian currency fell amid expectations of new sanctions from the US and declining oil prices.
The Russian currency market lives under the conditions of panic that spurs speculative interest on the part of investors. At the time when the ruble loses a few percent of its value daily, many banks and companies begin to profit from it, pushing their the main activities into the background.
The Bank of Russia needs to reduce lending to force banks and corporations sell currency, ex-chairman of the Bank of Russia, Chairman of the Supervisory Board of VTB Bank, Sergei Dubinin, told TASS. commenting on the fall of the ruble. “Right now, one is left to restrain ruble liquidity, to push banks, corporations and individuals, who need to spend money in rubles, towards selling foreign currency,” said Dubinin.
According to him, the ruble has been “clearly oversold.” “We can see the lack of foreign currency in exchange offices, which indicates that indicates enormous amount of currency that has been bought,” he said. According to Dubinin, against the backdrop of the ongoing devaluation of the ruble, the balance of payments will be corrected, but imports will become so expensive that it will make purchasing from abroad pointless. “What can one spend this currency on then? Shall one expect another wave of speculations? One should not take currency risks so recklessly,” said Dubinin.
Nothing can be done to stop the Russian ruble from falling..
So??
Maybe thats Gods Will. Did you ever think of that ?
His Way of pulling them away from the toxic dollar or ….how do you like the fact that Good ole America is being funded right now by hard working Japanese workerss??
Oh you didnt know that Yellen bold faced lied when she said that QE had ended ?
No it didnt …the Fed simply hired their goons in Japan to force the head honchos at the Japan Central Bank to USE ( pardon me “borrow”) hard working Japanese PENSION FUNDS (or else someone gets whacked ) to buy Toxic US TREASURY bonds so you could continue in your gluttony….because they either didnt want to use AMERICAN pension funds ( or already have ).
Perhaps this is actually Gods Way of PROTECTING Russia through providing a new way of escape from that “phony money” ..from the HELL that is about to come down apon America when Japan gets hit with a different TYPE of Earthquake that brings down the dominoes ….so sorry , but I think God is much more in control of Russia then you give Him credit for .
YOU dont see whats ahead . He does and His thoughts and Ways are much higher then ours.
When the Powers that be SNEER and LAUGH at GOLD and SILVER which HE created and elevate “Devils Paper ” above it …..watch out for His Wrath.
I warn you The wisdom of men is FOOLISHNESS to God.
He will put all you whom think you are “wise” and “above divine” and “untouchable ” IN YOUR PLACE!!