How Far Away Is Ruble Stabilization?

RUSSIA ENERGY / FINANCE - Report 31 Jan 2014 by Marcel Salikhov and Leonid Grigoriev

Executive Summary In the first three working weeks of January 2014, the Russian ruble plunged 7.9% against the USD and 6.7% against the EUR. The Central Bank’s bi-currency basket, which it uses as the operational benchmark for FX policy, hit 41 rubles – its highest level since early 2009, when the CBR started transitioning towards a more flexible FX regime. The ruble’s decline comes in line with other EM currency changes at the start of 2014. But there are several factors specific to Russia including: (1) a decrease in the amount of foreign currency interventions by the Central Bank; (2) a ...

Now read on...

Register to sample a report

Register