Kremlin blames loose monetary policy as rouble slides past 101 vs dollar.
Kremlin blames loose monetary policy as rouble slides past 101 vs dollar.
Rouble has lost 25% of its value since the war began.
President Vladimir Putin's economic adviser rebuked the central bank on Monday as the rouble slid past 101 per U.S. dollar, blaming its 30% year-to-date slump on loose monetary policy and revealing growing discord among Russia's monetary authorities.
Seems like sanctions are working after all - I wonder why so many people always tried to tell a different story?
Nooo they dont work but please stop the sanctions even though they totally dont work
Love, Ivan Conscriptovich
Well they do have a lot of their own gas and oil, and everyone knows that gas and oil can be used to run an entire economy with no other inputs.
I remember when the sanctions had already failed, that the decoupling was complete, Russias financial services sector would bolster it, etc etc
There are people trying to say the same about China but what they fail to get is for the last few decades other countries have been opening factories and simply use China as a distributor.
China now has a failing real estate bubble while America is working to buy their goods less. All it takes is for that distributor role to be lost and China will invade Taiwan and repeat exactly what Russia is doing
I think COVID while horrible, was a perfect wakeup call to companies that the JIT model and having everything made and sourced from China was not a good idea. It's good to see the decupling from China. Hopefully it will continue and the SEA countries are using the influx of money to their advantage.
Just like Brexit! Wait a minute....
Nothing at all to do with the war or sanctions? Clowns.
Clownsviolent psychopaths
Only 25%? The pound dumped to nearly a dollar earlier this year. It's not just them, all money has been acting up lately. They're lucky not to have it worse given that they've destroyed Russia's long term economics with this war (not to mention centuries of harsh extractive economics and a long historical trend of resisting modernization)
I wouldn't really use the pound as a comparison for anything - we decided that committing economic suicide and abandoning free trade with our closest trading block was a small price to pay for being able to be mean to poor brown people. The reviews are coming in; would you believe that that was a stupid decision, and we've a stupid currency that's not worth as much any more?
Ooooweee yeah if they're attacking the bank for raising rates, and they drop those rates, I think we could see massive inflation in Russia soon.
This is the best summary I could come up with:
"The central bank has all the tools to normalise the situation in the near future and ensure that lending rates are reduced to sustainable levels.
On Monday, the bank said it saw no financial stability risks from the rouble's weakening and gave another hawkish signal that a rate hike is possible soon.
The rouble has chartered a turbulent course since Russia invaded Ukraine, slumping to a record low of 120 against the dollar in March last year before recovering to a more than seven-year high a few months later, supported by capital controls and surging export revenues.
"The weaker rouble is a damning indictment of Russia’s war on Ukraine," Timothy Ash, a London-based senior sovereign strategist at BlueBay Asset Management, said in an email.
Last week, Russia effectively abandoned its budget rule, with the central bank halting the finance ministry's FX purchases to try and reduce volatility.
"The central bank is not fully in control," independent Moscow-based economist Ian Melkumov told Reuters, although it has aggressive tools that it is currently reluctant to use.
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