Panic in Russia: Moscow is no cure for ruble decline – Daily Mirror

Panic in Russia: Moscow is no cure for ruble decline – Daily Mirror

15:34 clock From Elke Windisch

It is an act of desperation: In 17 percent of Russia has raised rates to stop capital flight. That the measure fizzles out, for a simple reason.

“forced, but really,” praised ex-Finance Minister Alexei Kudrin on Tuesday the decision of the Russian central bank to raise interest rates from 10.5 to 17 percent. Relief for the ruble, the last six months declined the exchange rates against the dollar and the euro by almost 40 percent, the decision did, however briefly. By afternoon put the ruble continued its steep decline and even ripped the stock prices of Russian companies into the abyss.

The valley floor, warned analysts, is far from being achieved. Exchange rates, where a cost $ 100 rubles, could be envisaged

On Tuesday, the greenback cost -. He and not the Euro is in Russia unofficial reserve currency – after all, already 64.45 rubles. For the euro changeover even demanded 78.87 rubles. A third more than at the height of the global financial crisis of 2009.

There is now in Russia panic as the 1998 bank crash, when the country by scraping just wide of the bankruptcy. Again ruble accounts en masse dissolved, the savings initially converted into hard currency and then hidden in the bed box. For the money worldwide trust the Russians as little as the ruble. Although these have just been committed by supervisors only to a massive increase of the Fund for securing small and medium-sized credit.

For additional irritation ensures that ruble exchange rate and oil prices have developed in the meantime apart. The price of the black gold redeployed again slightly, the free fall of the ruble, however, have been able to absorb neither interest rate increase of the Central Bank nor its support purchases.

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Critical analysts for the landslide state oil company Rosneft responsible. The management is a multi-billion dollar government loan to bridge liquidity shortages – have replaced immediately upon receipt in hard currency and thus the intervention by the central bank “neutralized” – a result of Western sanctions.

Putin sees speculators at work

What is happening with the ruble has nothing to do with the market economy and is irrational, was Sberbank CEO German Gref, hoping for a quick end to the turmoil , Kremlin chief Vladimir Putin and central bank chief Elvira Nabiullina explain the plight of a conspiracy of speculators who bet against Russia and the ruble. You will soon run out of steam.

Financial experts, however, are not even in the medium term optimistic and explain it by years of economic failures. Sergei Aleksashenko who steered during the hyperinflation in the 90s, the central bank itself as vice chairman, warned in Moscow Business Journal “rbk daily” Moreover, financial sanctions of the West would have a stronger effect than the Kremlin and the government had initially assumed. Capital flight and take to the deficit in the trade balance could swell the end of 2015 to 300 billion dollars. To offset Russia would reduce its imports by five times – assuming the price of oil does not remain below 65 dollars a barrel

In crisis management, fears Aleksashenko, could the Kremlin opt for the worst-case scenario. Sitting out and after Search enemies, who can pass the blame. Therefore considered to be seriously jeopardized not only the chair of the Central Bank boss, but also the Prime Minister Dmitry Medvedev.