Keyword: ruble

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  • When Life Hands You Lemons, Tell Ruble Jokes

    12/29/2014 7:13:56 AM PST · by WhiskeyX · 1 replies
    Radio Free Europe / Radio Liberty RFE/RL ^ | Monday, December 29, 2014 | Radio Free Europe / Radio Liberty RFE/RL
    Remember when the ruble's biggest problem was that it was pornographic? Such worries now seem enviable in a month that has seen the Russian currency plummet to historic lows of 80 rubles to the dollar, reeling from the one-two punch of low oil prices and Western sanctions. Although the ruble has gained some strength since bottoming out, the battered currency remains the butt of many online jokes, as Russians cash in on one of their richest natural resources -- black humor: Kremlin spin doctor Dmitry Kiselyov announces the news: "The price of the dollar continues to fluctuate. This proves what...
  • Russian ruble drops 7 percent as economy shrinks

    12/29/2014 5:44:32 AM PST · by TigerLikesRooster · 6 replies
    Boston Herald ^ | December 29, 2014
    Russian ruble drops 7 percent as economy shrinks Monday, December 29, 2014 MOSCOW — The Russian currency extended its losses on Monday after a report showed the economy has started shrinking in annual terms for the first time since 2009 as the country is buffeted by falling oil prices and Western sanctions. Meanwhile, the government, which has been scrambling to support the ruble and the economy, announced fresh steps to keep the banks afloat. The ruble has been one of the world's worst performing currencies this year and was down another 5 percent on Monday, trading at 56 rubles per...
  • Russia’s Central Bank Abruptly Raises Key Rate to 17%

    12/15/2014 4:19:02 PM PST · by Oldeconomybuyer · 16 replies
    New York Times ^ | December 15, 2014 | By DAVID M. HERSZENHORN
    MOSCOW — With Russia scrambling to contain a currency crisis, the country’s central bank, in a surprise middle-of-the-night move, increased its key interest rate to 17 percent, from 10.5 percent. Aleksei L. Kudrin, a former Russian finance minister who is widely credited with having steered Russia through the 2008 financial crisis by convincing President Vladimir V. Putin to build up sovereign reserves, said that uneven policy making was adding to the erosion of confidence. “The fall of the ruble and the stock market is not only a reaction to lower oil prices and sanctions, but also distrust in the government’s...
  • Sense or Sabotage? Russia's Central Bank Takes Flak for Interest Rate Hike

    12/16/2014 1:22:46 PM PST · by Tailgunner Joe · 25 replies
    themoscowtimes.com ^ | December 16, 2014 | Delphine d'Amora
    The Central Bank's midnight decision to hike Russia's key interest rate to 17 percent set off clashing waves of support and opprobrium Tuesday as Russia struggled to come to terms with its new economic reality. The regulator's decision to raise rates by 6.5 percent followed the ruble's 10 percent nosedive against the U.S. dollar on Monday, its steepest single-day decline since the financial crisis of 1998. Despite the measure, the Russian currency fell sharply on Tuesday, at one point weakening 20 percent to touch a new low of 80 rubles to the dollar. Western sanctions over the Ukraine crisis, oil...
  • China To Launch Yuan Swap Trading With Russian Rubles On Monday

    12/28/2014 12:24:02 PM PST · by opentalk · 6 replies
    zero hedge ^ | 12/26/14 | Tyler Durden
    The world was slow to wake up to the new reality in which China is now the de facto IMF sovereign backstop, as Zero Hedge described two weeks ago in "China Prepares To Bailout Russia" when we noted that a PBOC swap-line was meant to reduce the role of the US dollar if China and Russia need to help each other overcome a liquidity squeeze, something we first noted over two months ago in "China, Russia Sign CNY150 Billion Local-Currency Swap As Plunging Oil Prices Sting Putin."In fact, it was only this week that Bloomberg reported that "China Offers Russia Help With...
  • Russia Debt One Grade Above Junk With Downgrades Coming, How Likely is Default?

    12/28/2014 6:24:46 AM PST · by Kaslin · 35 replies
    Townhall.com ^ | December 28, 2014 | Mike Shedlock
    All three rating agencies are expected to downgrade Russia's debt to junk soon and bailouts to Russian banks are on the rise, but how likely is default? The Financial Times reports ... Russia trebled the size of its bailout of troubled lender Trust Bank to Rbs99bn ($1.9bn) on Friday, laying bare the growing financial fallout from its currency crisis and the slump in the price of oil, its main export. The rapidly rising cost makes the rescue of Trust bank, which foundered as the rouble collapsed early last week, the second-largest seen in Russia. It has now consumed a tenth...
  • Nevermind U.S. shale, Saudi Arabia’s oil power play targets Iran’s economy

    12/27/2014 6:40:43 PM PST · by Red Steel · 24 replies
    Financial Post ^ | Updated: Dec 27 7:00 AM ET | Diane Francis
    All politics are local, except for oil politics. The Russians think these low oil prices are an American-Saudi conspiracy. American commentators believe that the Saudis have driven down prices to punish North Dakota’s shale oil revolution and drive its high-cost producers out of the game. In Canada, the paranoia in Calgary is that the Saudis and other Gulf oil producers want to drive the oil sands out of business. But what are the Saudis up to and are they powerful enough to control prices? This week the Saudi minister blamed low prices on oversupply from North America. But that is...
  • Scaled-Up Banking Rescue to Push Russian Budget Into Deficit

    12/27/2014 5:34:30 PM PST · by E. Pluribus Unum · 4 replies
    New York Slimes ^ | December 26, 2014 | David M. Herszenhorn
    MOSCOW — Russia’s central bank said on Friday that its bailout of Trust Bank – the first major lender to fail as a result of the sharp decline in the ruble – would cost about $2.5 billion, far more than previously anticipated, and the country’s finance minister said emergency measures to rescue the banking system would push the federal budget into deficit.
  • Russia's crisis has no end in sight as $50 oil looms, says OECD

    12/27/2014 4:16:00 PM PST · by E. Pluribus Unum · 12 replies
    The Telegraph ^ | 12/27/14 | Szu Ping Chan
    There is no end in sight for Russia’s economic crisis, as crippling sanctions and tumbling oil prices leave the country staring into an abyss, the Organisation for Economic Co-operation and Development has warned. Catherine Mann, the OECD’s chief economist, said Russia was moving closer to shutting itself off from the rest of the world, while the West’s sanctions against Moscow over its annexation of Crimea in Ukraine had left no end in sight for the country’s woes.
  • How He and His Cronies Stole Russia (Putin)

    12/27/2014 1:47:27 PM PST · by Bubba Ho-Tep · 42 replies
    For twenty years now, the Western politicians, journalists, businessmen, and academics who observe and describe the post-Soviet evolution of Russia have almost all followed the same narrative. We begin with the assumption that the Soviet Union ended in 1991, when Mikhail Gorbachev handed over power to Boris Yeltsin and Russia, Ukraine, and the rest of the Soviet republics became independent states. We continue with an account of the early 1990s, an era of “reform,” when some Russian leaders tried to create a democratic political system and a liberal capitalist economy. We follow the trials and tribulations of the reformers, analyze...
  • Russia's Economic Crisis: Can Putin Be Saved By His Own Propaganda?

    12/27/2014 12:49:47 PM PST · by E. Pluribus Unum · 15 replies
    NBC News ^ | 12/27/14 | Jim Maceda
    Runs on the bank. Hyperinflation. A plummeting ruble. It sounds like today's Russia, but these were also the symptoms of its last economic meltdown, in 1998. That would eventually force Russian President Boris Yeltsin out of power, and put an awkwardly shy and relatively unknown KGB official named Vladimir Putin in his place. No one believed Putin would survive more than a few months in the Kremlin. But 'Putinism' - a mix of authoritarian rule and economic prosperity based almost entirely on vast oil and natural gas reserves - has kept its namesake in power for the past 15 years....
  • Ukraine crisis: Separatist rebels free more soldiers

    12/27/2014 12:52:03 PM PST · by E. Pluribus Unum
    BBC News ^ | 12/27/14
    Pro-Russian rebels in eastern Ukraine have freed four Ukrainian prisoners a day after the two sides exchanged hundreds of captives. The release was announced by a Ukrainian defence ministry adviser, Vasyliy Budik, who said three were soldiers and the fourth a civilian.
  • Nuland: ‘Toxic Cocktail’ Hitting Russia as State Dept. Preparing More Support for Ukraine

    12/27/2014 7:19:20 AM PST · by opentalk · 22 replies
    PJ Media ^ | December 23, 2014 | NICHOLAS BALLASY
    Victoria Nuland, U.S. secretary of state for European and Eurasian affairs, said the U.S. has been internally preparing more financial support to Ukraine.“Senior IMF leadership was in Ukraine this week issuing a public validation of the reform program going forward but also confirming that the program agreed last year is going to need a significant adjustment – that there is a fiscal hole to the tune of $10-15 billion,” Nuland said at the American Enterprise Institute during a discussion examining the Ukrainian revolution one year later.“We expect that the IMF and the World Bank will have to increase their support...
  • Mistrust of Banks Take Over in Russia

    12/27/2014 6:06:20 AM PST · by Kaslin · 4 replies
    Townhall.com ^ | December 27, 2014 | Mike Shedlock
    In Russia, the overnight lending rates between banks has soared to 19%, a sign of widespread and warranted mistrust between banks, as one bank has failed. To stabilize the situation, Putin is considering bank deposit insurance up to an amount equivalent rate of about $26,000. Meanwhile, and although Russia is still burning through currency reserves, the value of the Ruble has been rising. CNN Money reports Russia Empties the Vault to Prop Up Ruble. So far this year the central bank has burned through more than $110 billion in foreign currency supplies. That's more than a quarter of what it...
  • Russia: NATO expansion is biggest threat we face - warns Ukraine it would be "dangerous" to do so

    12/27/2014 2:05:01 AM PST · by Cincinatus' Wife · 34 replies
    The Hill ^ | December 26, 2014 | Jesse Byrnes
    Russia has adopted a new military doctrine, keeping North Atlantic Treaty Organization (NATO) expansion first among its list of primary external threats. The revised doctrine [PDF in Russian - 29 pages with 58 sections], signed by President Vladimir Putin on Friday, is comparable to a 2010 version, which also listed NATO expansion as a primary threat. Additions to the doctrine include a highlighting of the threat from "global strategic antiballistic missile systems" and a Russian goal to protect its interests in the Arctic region, according to Russian state-funded news organization RT. The doctrine’s adoption comes days after Ukraine took a...
  • We Live In A New World And The Saudis Are The First To Get It

    12/25/2014 1:52:04 PM PST · by SatinDoll · 38 replies
    The Automatic Earth blog ^ | Dec. 24, 2012 | Raul Ilargi Meijer
    [ Secondary blog source: Tyler Durden / The Zero Hedge / www.zerohedge.com/news/2014-12-24/we-live-new-world-and-saudis-are-first-get-it ] There are many things I don’t understand these days, and some are undoubtedly due to the limits of my brain power. But at the same time some are not. I’m the kind of person who can no longer believe that anyone would get excited over a 5% American GDP growth number. Not even with any other details thrown in, just simply a print like that. It’s so completely out of left field and out of proportion that you would think by now at least a few more...
  • Traders Betting Russia’s Next Move Will Be to Sell Gold

    12/17/2014 1:49:34 PM PST · by OneLoyalAmerican · 26 replies
    Zerohedge ^ | Tyler Durden | 12/17/2014
    "Russia is at a critical juncture and given the sanctions placed upon them and the rapid decline in oil prices, they may be forced to dip into their gold reserves, if it happens it will push gold lower." That is what, according to some people Bloomberg has quoted, is in the cards.
  • Beware Putin’s Special War in 2015

    12/24/2014 5:11:32 PM PST · by Nachum · 40 replies
    The 20 Committee ^ | 12/23/14 | staff
    December 2014 is the month Putin’s Russia was plunged into undeniable crisis. Between the dramatic drop in oil prices and the collapse of the ruble, under Western sanctions pressure, Russians are going into the new year in a dramatically different, and lessened, economic situation than the one they enjoyed at the beginning of the year now ending.This will bring myriad hardships to Russians, particularly because even Moscow is admitting that low oil prices may be the “new normal” until the 2030’s. Caveats abound here. The vast majority of Russians don’t travel abroad, much less have vacation properties in Europe, nor...
  • Ukraine takes historic step toward NATO

    12/23/2014 8:39:40 AM PST · by KOZ. · 51 replies
    AFP via Yahoo ^ | 12/23/2014 | Dmitry Zaks
    Kiev (AFP) - Ukraine took a historic step toward NATO on Tuesday in a parliamentary vote that stoked Russia's anger ahead of talks on ending the ex-Soviet state's separatist war. Lawmakers in the government-controlled chamber overwhelmingly adopted a bill dropping Ukraine's non-aligned status -- a classification given to states such as Switzerland that refuse to join military alliances and thus play no part in wars. President Petro Poroshenko had vowed to put Ukraine under Western military protection after winning an election called in the wake of the February ouster in Kiev of a Moscow-backed president. "Ukraine's fight for its independence,...
  • The Russians Fighting a 'Holy War' in Ukraine

    12/23/2014 8:57:56 AM PST · by marshmallow · 5 replies
    BBC ^ | 12/17/14 | Tim Whewell
    Since the start of the conflict in eastern Ukraine eight months ago, the Kremlin has denied any direct involvement, including sending Russian troops. But there are Russian fighters on the ground who are proud to announce their presence - and to discuss their ideas of "holy war".Even when the morning sun catches the gold domes of its Orthodox churches, the Ukrainian city of Donetsk, stronghold of the pro-Russian rebels, doesn't look much like Jerusalem. Trolley-buses trundle through the dirty snow, past belching chimneys and the slag-heaps from the coal-mines on the edge of town. But through the smoke and grime,...
  • Ruble continues to gain as exporters are ordered to sell foreign currency

    12/23/2014 9:06:17 AM PST · by 11th_VA · 10 replies
    MarketWatch ^ | 23 Dec 2014 | By Andrey Ostroukh
    <p>MOSCOW — The ruble extended its rebound, hitting the highest levels in two weeks Tuesday, as Russian authorities ordered major state companies to sell foreign currency to stabilize the market.</p> <p>The order, which applies to big exporters including Gazprom OGZPY, -0.41% and Rosneft RU:ROSN is part of a package of stabilization measures that the government and central bank have imposed to pull the ruble USDRUB, -1.12% back from the record lows set during last week’s currency crisis. So far, the authorities have kept promises not to impose administrative controls on capital flows or ruble convertibility, sticking instead to less-formal steps.</p>
  • Scenes From Putin's Economic Meltdown

    12/23/2014 7:48:12 AM PST · by C19fan · 8 replies
    Politico ^ | December 21, 2014 | Alec Luhn
    Get the hot deals while they last! Whatever’s on your holiday shopping list—buy now, it may never be this cheap again! In a single day this past week, the ruble exchange rate dropped from 59 to 80 to the dollar, further eroding confidence in the Russian economy and ensuring a deep recession next year—but also briefly turning Moscow into the shopping capital of the world. Although this past week’s currency crisis marked the worst fall for the ruble since Russia defaulted on its debt in 1998, no one was waiting in bread lines or starting a run on the bank....
  • The week the dam broke in Russia and ended Putin's dreams

    12/22/2014 4:39:46 AM PST · by elhombrelibre · 35 replies
    The Telegraph ^ | 20 Dec 14 | Ambrose Evans-Pritchard
    Gallows humour is back in Moscow. Asked what he would do to stop the rouble spiralling out of control, the former governor of Russia’s central bank replied: “I would pick up a pistol and shoot myself.” This was the week when the country’s long-festering crisis turned virulent. A last-ditch attempt to defend the exchange rate by raising interest rates to 17pc failed within hours, yet the shock is surely enough to set off a chain of corporate failures and push banks over the edge. Traders in the City watched open-mouthed as the dam broke on Black Tuesday. The event exposed...
  • Russia’s Central Bank Purchases 600,000 Troy Ounces of Gold in November

    12/20/2014 7:53:44 AM PST · by dennisw · 25 replies
    caseyresearch ^ | Dec 19 | Ed Steer
    Russia Busts "Gold-Selling" Rumors, Reports It Bought Another 600,000 Ounces Taking Gold Holdings To New Record High Yesterday, when we reported the latest rumor of Russian gold selling, this time out of SocGen, we said that "it should be noted that SocGen and its "sources" have a conflict: in an indirect way, none other than SocGen is suddenly very interested in Russia stabilizing its economy because as we wrote before, "Russia Contagion Spreads To European Banks : French SocGen, Austrian Raiffeisen Plummet" which also sent SocGen's default risk higher in recent days. So if all it will take to stabilize...
  • What’s Really Driving Saudi’s Reluctance?

    12/19/2014 10:50:36 AM PST · by thackney · 42 replies
    Oil Pro ^ | 12/19/2014 | Kurt Rippelmeyer
    There are numerous stories, on the internet, regarding the decline of oil prices. Everybody has an opinion or forecast, but unfortunately, they range from the eternal optimist to depths of the ultra deep (well ok the deepwater) drill rig. The majority of these posts talk about the glut in recent months as supply overwhelms the demand. Mostly thanks to slumping economies around the world, especially the largest users of petroleum. There is also significant chatter around the internet about Saudi Arabia (KSA) and their reluctance to curb production, which would help the price of oil go back up, to the...
  • The reason oil could drop as low as $20 per barrel

    12/19/2014 12:11:58 PM PST · by C19fan · 82 replies
    Reuters ^ | December 19, 2014 | Anatole Kaletsky
    How low can it go — and how long will it last? The 50 percent slump in oil prices raises both those questions and while nobody can confidently answer the first question (I will try to in a moment), the second is pretty easy. Low oil prices will last long enough for one of two events to happen. The first possibility, the one most traders and analysts seem to expect, is that Saudi Arabia will re-establish OPEC’s monopoly power once it achieves the true geopolitical or economic objectives that spurred it to trigger the slump. The second possibility, one I...
  • Checkmate: Is Russia Selling Oil For Gold?

    12/19/2014 10:05:33 AM PST · by Strategy · 64 replies
    SilverDoctors ^ | December 19, 2014
    Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future. No matter how strange it may seem, but right now, Putin is selling Russian oil and gas ONLY for physical gold. How long will the West be able to buy oil and gas from Russia in exchange for physical gold? And what will happen to the US petrodollar after the West runs out of physical gold to pay for Russian oil, gas and uranium, as well as to pay for Chinese goods?
  • Putin: West wants to defang, declaw Russian bear

    12/19/2014 1:49:17 AM PST · by Berlin_Freeper · 39 replies
    AP ^ | December 18, 2014 | LAURA MILLS and VLADIMIR ISACHENKOV
    Sternly warning the West it cannot defang the metaphorical Russian bear, a confident-looking President Vladimir Putin promised Thursday to shore up the plummeting ruble and revive the economy within two years. While he issued a litany of sharp rebukes against the West, Putin struck a conciliatory note on Ukraine, saying that the rebellious east should remain part of the country, backing a quick exchange of war prisoners and praising his Ukrainian counterpart. The mixture of blistering anti-Western rhetoric and constructive signals appeared to indicate that Putin is eager to negotiate a face-saving solution to the Ukrainian crisis, but has no...
  • Exxon Mobil Shows Rising U.S. Output as Prices Fall

    12/18/2014 1:16:24 PM PST · by Up Yours Marxists · 29 replies
    Salt Lake Tribune ^ | December 18, 2014 14:15 GMT | Joe Carroll (Bloomberg News)
    Crude oil production from U.S. wells is poised to approach a 42-year record next year as drillers ignore the recent decline in price pointing them in the opposite direction. U.S. energy producers plan to pump more crude in 2015 as declining equipment costs and enhanced drilling techniques more than offset the collapse in oil markets, said Troy Eckard, whose Eckard Global owns stakes in more than 260 North Dakota shale wells. Oil companies, while trimming 2015 budgets to cope with the lowest crude prices in five years, are also shifting their focus to their most-prolific, lowest-cost fields, which means extracting...
  • Oil drop sends major central banks in different directions

    12/18/2014 6:58:19 AM PST · by mac_truck · 2 replies
    Reuters ^ | 12/18/2014 | Paul Carrel, Mike Peacock and Howard Schneider
    The world's major central banks are scrambling to work through the implications of the near halving of the price of oil in the second half of 2014, and they are coming up with very different conclusions. Perhaps unsurprisingly, policymakers looking at robust economic recoveries such as in the United States and Britain are focused on the likely boost to growth and consumption from markedly lower energy prices and the later upward impact that should have on inflation. But for the European Central Bank, battling to revive a moribund economy, the worry is whether cheap oil could tip the euro zone...
  • Russian ruble weakens as traders see no major measures in Putin speech

    12/18/2014 4:29:48 AM PST · by elhombrelibre · 20 replies
    Reuters ^ | Alexander Winning and Vladimir Abramov
    The ruble weakened against the dollar and euro on Thursday with traders saying President Vladimir Putin had so far offered no concrete measures to pull Russia out of a crisis at his end-of-year news conference. At 0954 GMT (04:54 a.m. EST), the ruble was around 3 percent weaker against the dollar at 62.04 RUBUTSTN=MCX after opening more than 1 percent higher. The rouble was also around 2 percent weaker versus the euro at 76.50 EURRUBTN=MCX on the Moscow Exchange.
  • Russia: Falling Ruble Causes Businessman to Commit Suicide in Moscow Hotel

    12/18/2014 2:54:48 AM PST · by TigerLikesRooster · 4 replies
    Sputnik News ^ | Dec. 17, 2014
    Falling Ruble Causes Businessman to Commit Suicide in Moscow Hotel 10:22 17.12.2014(updated 10:40 17.12.2014) Yesterday’s Russian stock exchange panic caused a co-founder of a financial company to kill himself in one of Moscow’s top hotels - Hotel National. MOSCOW, December 17 (Sputnik) — A businessman, who owned a stake in an investment enterprise, committed suicide in Hotel National Moscow yesterday night, having shot himself in the head. Police are investigating the incident. The late Ivan Shervashidze left a suicide note and his last will. According to some reports, he owned a business selling musical instruments and equipment and co-owned a...
  • Is Ruble Collapse Act of War-Paul Craig Roberts

    12/17/2014 12:58:34 PM PST · by GilGil · 48 replies
    USAWatchDog ^ | 12/17/2014 | Paul Craig Roberts
    On the teetering economy and possible economic collapse, Dr. Roberts says, “We know something serious is wrong. The only provision of Dodd-Frank that has any teeth is the provision that says if the big banks are going to be casinos and gamble on derivatives, they cannot do that in the depository institution where depositors have their accounts. They have to farm it out into subsidiaries. So, if the subsidiaries get into trouble, the subsidiaries have no access to depositors’ money. This is the only real reform part of Dodd-Frank. Citigroup got put into the recent spending bill, the repeal of...
  • This Is What a Currency Collapse Looks Like

    12/17/2014 11:11:24 AM PST · by Kartographer · 67 replies
    SHTF Plan ^ | 12/17/14 | Mac Slavo
    Full Title:This Is What a Currency Collapse Looks Like: Shopping Frenzy: “We Have A Lot Of Rubles Losing Value Every Second” “I don’t need this car,” he said with a shrug. He already owns two Porsches and a Land Rover. But, he figured the prices will soon go up and the ruble will probably go down. “We are headed for a crisis,” he said. … Electronics stores were packed late into the evening as shoppers scooped up iPhones and iPads at prices over $100 lower than what they cost in the United States. Apple’s Russian website halted online sales “due...
  • Gold Roubles - This Is What Gold Does In a Currency Crisis

    12/17/2014 10:39:37 AM PST · by blam · 13 replies
    TMO ^ | 12-17-2014 | John_Rubino
    December 17, 2014 John Rubino To say that gold is in a bear market is to misunderstand both gold and markets. Gold isn't an investment that goes up and down. It is money in the most basic store-of-value sense. Most of the time it just sits there, and when its price changes in local currency terms that says more about the local currency than about gold. But when currencies collapse, gold shines. Consider the above from the point of view of a typical Russian. The ruble is tanking (no need to understand why -- all fiat currencies go this way...
  • Rouble in sharpest fall since 1998 as storm clouds gather for Putin

    12/15/2014 11:02:05 AM PST · by elhombrelibre · 5 replies
    Reuters ^ | 15 Dec 14 | Alexander Winning and Vladimir Abramov
    * RTS share index plunges 10 percent to 5-year low * Central bank seen intervening to support rouble * Putin's popularity in part based on stability (Recasts and update prices) MOSCOW, Dec 15 (Reuters) - The rouble plunged almost 10 percent against the dollar on Monday, its sharpest fall since 1998, and Russian assets sold off across markets, testing the firepower of the central bank and posing a major challenge for President Vladimir Putin. Traders said the slump in the rouble, down 49 percent against the dollar this year, forced the central bank to intervene in the market on Monday...
  • Panic on the streets of Russia: Worried shoppers queue to panic-buy big-ticket items amid fears

    12/17/2014 8:33:35 AM PST · by C19fan · 53 replies
    UK Daily Mail ^ | Decemeber 17, 2014 | Chris Pleasance
    Russia shoppers have been panic-buying everything from cars to flat pack furniture today after stores warned of price hikes at the weekend following a sharp fall in the value of the rouble. Several Ikea stores have been forced to close after the company warned its prices will go up from tomorrow, while cars and home appliances have been bought in record numbers. The rouble has slid 15 per cent in just two days, hitting an all-time low of 80 to the dollar at one point yesterday, prompting fears of a run on Russian banks.
  • What the Hell Is a “Conventional Currency Unit?” (Russia)

    12/17/2014 8:02:58 AM PST · by C19fan · 6 replies
    Vocatix ^ | December 16, 2014 | Sarah Kaufman
    Russians are saying “ooh yeh” to the collapse of their currency, but it’s not as positive as it might sound to Western ears. As the value of the ruble goes into free fall, Russians are preparing for a return to the economic chaos of the ’90s. At a retail level, it means that store managers across Russia are rewriting their price tags in a currency Russians call a “conventional currency unit.” In Russian, the phrase for “conventional currency unit” is uslovnaya yedinitsa—abbreviated to an acronym pronounced ooh yeh.
  • Russian Ruble Crashes to World's Worst-Performing Currency

    The ruble collapsed by 10 percent against the U.S. dollar Monday earning the Russian currency the dubious laurels of the world’s worst-performing currency this year. The Russian currency has now fallen 49.3 percent against the greenback since January, according to data from the Moscow Exchange. The drop takes it below the Ukrainian hryvna, which has weakened 47.9 percent in 2014. Monday’s plunge was the largest single-day fall for the ruble since the financial crisis of 1998 when Russia was forced to default on its debt after exhausting its reserves in a fruitless bid to prop up the currency. In evening...
  • Sorry, Putin. Russia’s economy is doomed

    12/15/2014 10:12:57 PM PST · by elhombrelibre · 156 replies
    Washington Post ^ | 15 Dec 14 | Matt O'Brien
    A funny thing happened on the way to Vladimir Putin running strategic laps around the West. Russia's economy imploded. The latest news is that Russia's central bank raised interest rates from 10.5 to 17 percent at an emergency 1 a.m. meeting in an attempt to stop the ruble, which is down 50 percent on the year against the dollar, from falling any further. It's a desperate move to save Russia's currency that comes at the cost of sacrificing Russia's economy. So even if it "works," things are about to get a lot worse. It's a classic kind of emerging markets...
  • Russia risks Soviet-style collapse as rouble defence fails

    12/17/2014 4:51:27 AM PST · by elhombrelibre · 31 replies
    Daily Telegraph ^ | Ambrose Evans-Pritchard
    Russia has lost control of its economy and may be forced to impose Soviet-style exchange controls after "shock and awe" action by the central bank failed to stem the collapse of the rouble. “The situation is critical,” said the central bank’s vice-chairman, Sergei Shvetsov. “What is happening is a nightmare that we could not even have imagined a year ago."
  • Vladimir Putin's woes are about to get worse

    12/17/2014 4:26:55 AM PST · by elhombrelibre · 20 replies
    CNN ^ | 17 Dec 14 | Frida Ghitis
    What would you do if you were Vladimir Putin? What would you do if you were a Russian citizen? Russia's economic problems -- slowly incubating in recent months -- are about to get a lot worse. And that should make all of us nervous.
  • Oil Prices, Sanctions and Currency Collapse Put Putin in a Bind

    12/17/2014 4:37:09 AM PST · by elhombrelibre · 10 replies
    NBC ^ | 16 Dec 14 | Erin McClam
    Vladimir Putin is suddenly feeling the squeeze. The Russian president, earlier this year a swashbuckling land-grabber who seemed to confound the West, finds himself in a three-way economic vise — tumbling oil prices, punishing sanctions and now a collapse in his country's currency. "He really is going to be hit by a perfect storm," said Andrew Kuchins, director of the Russia program at the Center for Strategic & International Studies. "Although much of it is his own making." The value of the Russian ruble plunged by as much as 20 percent on Tuesday despite a desperate attempt by the central...
  • The Ruble’s Fall and Mr. Putin’s Reckoning

    12/17/2014 12:35:04 AM PST · by elhombrelibre · 40 replies
    NYT ^ | 16 Dec 14 | OP ED
    Russians are watching their country suffer another avoidable economic calamity. The blame for this rests largely with the disastrous policies of President Vladimir Putin, who has consistently put his ego, his territorial ambitions and the financial interests of his cronies ahead of the needs of his country. ........................................................ Long before he annexed the Crimean peninsula and began backing pro-Russian forces in eastern Ukraine, Mr. Putin created an economic system that allowed a coterie of insiders to grow wealthy on Russia’s vast oil and gas reserves. He did little to diversify the economy or to make it more resilient. Now Russian...
  • Apple temporarily halts Russian online sales over currency issues

    12/16/2014 7:34:14 PM PST · by SeekAndFind · 15 replies
    C/NET ^ | 12/16/2014 | by Shara Tibken
    Russian customers waiting for Apple's iPhone 6 will have to wait longer. The Cupertino, Calif., electronics giant on Tuesday temporarily shuttered its online store in the Eastern European country because of the instability of Russia's currency. Apple doesn't operate physical stores in the country, and the company declined to say when it would resume online sales there. "Due to extreme fluctuations in the value of the ruble, our online store in Russia is currently unavailable while we review pricing. We apologize to customers for any inconvenience," Apple said in a statement. The ruble has been dropping sharply in recent days...
  • Western Banks Cut Off Liquidity To Russian Entities

    12/16/2014 5:42:31 PM PST · by Kartographer · 61 replies
    ZeroHedge ^ | 12/16/14 | Tyler Durden
    As Zero Hedge first reported today, shortly before noon one (and subsequently more) FX brokers advised clients that any existing Ruble positions would be forcibly closed out because "western banks have stopped pricing USDRUB", over concerns of Russian capital controls. Ironically, it was this forced liquidation of mostly short RUB positions that pushed the RUB higher, which in turn had a briefly favorably impact on energy commodities and risk assets, as the market had by then perceived the Ruble selloff as excessive. Of course, since nothing had actually changed aside from a temporary market technical, the selloff promptly resumed into...
  • RUSSIA'S SINKING ECONOMY BECOMING A GLOBAL THREAT

    12/16/2014 3:14:47 PM PST · by Star Traveler · 87 replies
    Associated Press ^ | Tuesday, December 16, 2014 | Josh Boak
    WASHINGTON (AP) -- Russia's suddenly escalating financial crisis risks spilling beyond its borders and endangering parts of the global economy. With economies in Europe, Japan, China and Latin America already ailing, fresh threats have emerged from Russia's shriveled currency, its move to dramatically boost interest rates, the damage from plummeting oil prices and Western sanctions over Russia's action in Ukraine. The alarming 10 percent drop in the ruble over the past two days has amplified the economic turmoil in Russia. Investors fear that Russia may default on its foreign debt obligations - a move that would inflict hundreds of billions...
  • Russia Is Throwing The Kitchen Sink At The Ruble To Try To Stop Its Collapse

    12/17/2014 5:18:08 AM PST · by blam · 10 replies
    BI ^ | 12-17-2014 | Mike Bird
    Mike Bird December 17, 2014 After a brutal sell-off Tuesday, the ruble shot up in early trading Wednesday morning, rising by nearly 7%, from 68 to the dollar to 63.16 at 8:09 a.m. GMT. The rise came as the Russian finance ministry intervened in the currency market, according to Bloomberg. That means it's selling off a chunk of its dollar reserves to buy rubles, driving the currency's value up. By 9 a.m., though, the exchange rate fell back to where it started, and the ruble is falling again: down 0.68% at 68.51 as of 10:15 a.m. GMT. Here's how the...
  • Russian ruble suffers new fall but the collapse slows

    12/17/2014 4:01:33 AM PST · by elhombrelibre · 11 replies
    Reuters ^ | 17 Dec 14 | Vladimir Abramov and Alexander Winning
    The dramatic fall in Russia's ruble slowed on Wednesday, with the government selling foreign currency to prop it up after a 50 percent fall against the dollar this year. Losses were partly contained by exporters selling dollars in preparation for paying their monthly tax bills but the slide was less precipitous than in the past two days when it fell about 20 percent against the dollar. At 0508 ET, the ruble was down around 1.6 percent against the dollar at 68.58 rubles per dollar and was 0.3 percent weaker versus the euro at 85.40.
  • Russians Are Scrambling To Get Their Hands On US Dollars

    12/16/2014 10:05:30 PM PST · by blam · 49 replies
    BI ^ | 12-17-2014 | Elena Holodny
    Elena Holodny December 16, 2014As Russia's currency crisis unfolds, Russians are scrambling to get their hands on US dollars. Even Russians working in the oil sector are rushing to trade their rubles in for dollars. A bank in Russia's Khanty-Mansiysk region — aka an area in Russia that produces approximately 51% of Russian oil — has completely run out of dollars, and is almost out of euros, reports Interfax. The bank still has rubles. "Basically, what this means is that people who work in the oil industry [in Khanty-Mansiysk] just got all of their money out of the bank in...