Black day in Moscow. Ruble sharp quilted. The Prime Minister shall convene a conference – Polish Radio

Black day in Moscow. Ruble sharp quilted. The Prime Minister shall convene a conference – Polish Radio

  The Russian stock market is in shock due to a sharp decline in the value of the ruble , photo: PAP / EPA / Anatoly Maltsev
 

On Monday, the ruble was breaking records several weaknesses. His quotations fell sharply on the Moscow stock exchange. In the evening, one US dollar cost of the ruble 63.4 and 78.81 euro ruble. Russia’s currency depreciated as much as 8%. Some experts rate this decline as “minikrach.”

Lifebuoy of the Bank of Russia

Bank of Russia, which is the central bank of the Russian Federation decided to intervene. Called a special meeting on the night of Monday to Tuesday. It was decided to increase the base interest rate from 10.5 to 17 percent. It’s a huge jump by as much as 6.5 percentage points. Previous intervention took place on 11 December. The Bank also decided to increase, but only by 1 point.

All in all, from the beginning of the base rate in Russia grew by 11.5 percentage points. Interestingly even before the invasion of the Crimea base rate in Russia was 5.5 percent.

The decision of the Bank of Russia only briefly dampened sentiment on the Moscow stock exchange. In the first few minutes of Tuesday’s session, the dollar fell to 58.15 even the ruble, and the euro – up to 72.45 RUB. This is what happened after the Russian media describe as “black Tuesday”.

Analysts say about panic. Only on Tuesday, the ruble has lost about 25 percent. values. Such a strong depreciation in one day, the currency has not lived for 20 years. We have never been so cheap.

The crash in the stock market currency also dragged down the stock market.

Light up Tuesday afternoon

At the end of the Russian currency began to climb slightly upward. In the afternoon in Moscow paid for one euro 92 rubles and 72 rubles per dollar. At the Kremlin meeting was held, dedicated to the financial and economic situation of the country. It was attended by leading Russian politicians, including Prime Minister Dmitry Medvedev, Minister of Finance and the head of the Central Bank.

What happens to the Russian currency?

Some experts are still trying to explain the decline in the current record plunge in oil prices in the world. On Tuesday morning, Brent crude oil prices slid below the psychological level of $ 60 a barrel. Some analysts predict that in 2015 the price of “black gold” may fall to $ 50 per barrel. Since the beginning of the year already Brent became cheaper by 47 percent.

For Russia it is the sale of crude oil and natural gas is the main source of raising rates. Low prices mean lower revenues so.

Some of the media in Moscow argue that the current collapse of the ruble contributed Rosneft oil company, which last week issued bonds in the amount of 625 billion rubles, and now supposedly lists those funds for currency to pay the installments and interest on previous loans.

Rosneft categorically denies this, claiming that obtained from the ruble bond has not affected his bank account. President of the company, Igor Sechin, one of the closest associates of President Vladimir Putin described the rumors about the role of Rosneft in the current unprecedented depreciation of the ruble as a provocation.

The Kremlin razor start firing up the money?

The TV quoted by independent economist Mikhail Dmitriev Dożd warned that at the rate of 100 rubles per dollar Bank of Russia will simply start printing rubles. – Course 100 rubles per dollar is a situation in which the country will enter into a spiral, which will not survive and the federal budget and the central bank. Starts printing rubles, which will return to the foreign exchange market, which will greatly increase the dollar – he said.

Vice President of the Bank of Russia Sergei Szwecow said Tuesday that the central bank action will not be limited to an increase in the basic interest rate. Szwecow did not disclose what other steps it intends to take.

The head of the central bank Elvira Nabiullina for his part said that they are not considered any administrative decisions regarding the foreign exchange market.
Nabiullina also called economic actors to adapted to the new economic realities.

Russia at the level of junk?

Due to the very sharp decline in the value of the ruble is only a matter of time reduction by international rating agencies rating Russia to junk – says Timothy Ash, head of emerging markets research department at Standard Bank.

Ash notes that the fall of the ruble during the Tuesday session is unheard of in a country that is very substantial foreign exchange reserves, the surplus in the account current account and budget implementing current liabilities.

According to him, such a large depreciation of the ruble is not only an expression of lower oil prices and unconvincing actions of the Central Bank of Russia, but also an expression of concern about the deterioration of Russia’s relations with the West on the background of the conflict in Ukraine .

– The large depreciation Russia would cause great damage in a short time – Ash said in his commentary.

Russian crash psychological weapon

Dips ruble and oil prices appear to be allies of the Ukrainian soldiers fighting in the east of the country. Separatist militants informed daily about the value of their currencies and getting a lower price of oil. They call it a psychological weapon.

– Every day we monitor the dollar and oil prices. Every day, we are pleased with what we see and pass this information to the other side. Everyone knows what’s going on – they say.

CRISIS IN UKRAINE – special service & gt; & gt; & gt;

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