[ad_1]
From Bloomberg:
Writing in a uncommon column printed by state information company Itar-Tass, President Vladimir Putin’s chief financial adviser stated “the supply of the weakening of the ruble and the acceleration of inflation is tender financial coverage.” Russia wants a robust ruble, and policymakers have the mandatory instruments to normalize the forex worth within the close to future, he stated.
Right here’re two photos of the ruble’s alternate charge (up is depreciation towards USD), over 5 years, over the past week.
Be aware that the present worth displays the CBR resolution to cease buying international forex. A call is imminent on the coverage charge, tomorrow 10:30am native time. The present low cost charge is 8.5%. My studying of consensus of Western economists is one thing like 10% is critical by 12 months’s finish to stabilize the ruble (whereas then hammering the economic system; see this submit for graphical interpretation of the Russian scenario in IS-LM-BP=0).
Be aware that is all going down towards a backdrop of intense capital controls. In that context, the deteriorating commerce stability take’s a driver’s function.
[ad_2]
Source_link