The Russian government seems in the ruble crisis in falling Panic: The Ministry of Finance has begun its foreign currency reserves to sell. Thus, Moscow wants to stop the falling ruble exchange rate.
Russia’s government stands up against the ruble decay. In support of the weak currency the Russian Ministry of Finance began to sell foreign exchange reserves. “We sell as much as necessary is” to a spokesman said on Wednesday the Interfax news agency in Moscow. Thus is the amount of foreign exchange reserves, which can be used for this purpose, seven billion US dollars. The ruble is undervalued, the spokesman said.
The ruble responded immediately and put in comparison with the previous evening by almost five percent against the US dollar. A dollar cost last about 64 rubles. The day before, there was panic selling of the Russian currency, which is under pressure because of the oil price decline for months. At times, had to be paid 80 rubles for one US dollar. A dramatic rate hike by the central bank from 10.5 to 17 percent was initially fizzles ineffective.
Putin is silent on the ruble weakness
The Russian central bank had sold 1.961 billion US dollars to support the ruble on 15 December, the agency Tass reported, citing the financial institution. The interventions have had little effect.
Prime Minister Dmitry Medvedev joined restrictions on investors in the Russian foreign exchange market again. President Vladimir Putin’s spokesman Dmitry Peskov According probably talk this Thursday during his annual press conference also great about the economy of the country. An extraordinary opinion before – about the ruble weakness – not plan Putin.
Previous measures show no effect
Since the beginning, the ruble 40 percent of its value lost , Russia’s foreign reserves have melted from 524 to 420 billion dollars.
The decline of the Russian ruble has resulted in the opinion of Russia Federal Government Commissioner to nervousness in Moscow. “All noted that the measures that have been taken so far, so, for example, the change in the prime rate, no lasting effect on the ruble exchange rate have,” said Gernot Erler (SPD) on the INFOradio the RBB. “You can tell in Moscow at the moment a certain nervousness.” But
The main reason for the misery were not the sanctions imposed by the West. Majority share was the decline in oil prices, Erler said. The Russian central bank has been trying for weeks to stabilize the currency. A sovereign default of Russia by Erler’s estimates, however, no immediate threat: “We are still far away, because Russia has substantial reserves.”
German companies feel “dramatically declining purchasing power” of Russians
The massive depreciation of the ruble reduces the purchasing power in Russia, including also suffered from German companies, said the head of the German Foreign Trade Chamber of Commerce (DIHK), Volker Treier, the “New Osnabrück newspaper” on Wednesday. For the coming year, the outlook clouded further and investments decreased. “German car factories are connected or dismissed for several weeks on short-time working employees,” Treier said. German exports to Russia have declined by Industry estimates this year by 20 percent
rubles in free fall. Threatens Russia the next state bankruptcy
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