ECONOMY • The slide of the ruble remember the crash of 1998 – Courrier International

ECONOMY • The slide of the ruble remember the crash of 1998 – Courrier International

The Russian Central Bank announced a sharp rise in interest rates. Thus it seeks to stem the rout of his monnnaie, which still fell nearly 10% on 15 December. In Moscow, there is growing concern.

Russian financial markets are in turmoil, the ruble fell another 10% on 15 December. In total, the currency has lost almost half its value against the dollar since the beginning of the year. The fall was accentuated December 16: midday, it was 80 rubles to buy a dollar, and 100 rubles per euro

sharply increasing its rate by 6.5 percentage points, bringing it to. 17% – an announcement in the middle of the night in Moscow – “the Russian Central Bank means the markets it will not let the ruble collapsed completely,” says Financial Times with quote a financial analyst. This could however not be enough – and although it worked, says an economic journalist Washington Post that would not prevent a worsening of the situation.

In one of the most pessimistic official forecasts published so far, the Central Bank itself provides that the Russian economy could contract by 4.5% to 4.7% in 2015 if the barrel / day remained at $ 60, says the Financial Times. The main problem remains the country’s dependence on oil-vis, the newspaper said.

In Moscow, the The collapse of the ruble recalls the period of economic crisis of the 1990s, says financial daily. An official of the municipality of the city said to the Russian news agency Interfax that it was illegal to view prices in another currency than the ruble (understood in dollars), a thinly veiled reference to the practices of time.

The nerves let go even in the most optimistic

In the Russian press, the morale is not looking good after the new dive .dropoff window “An irreversible collapse” of Kommersant. “ The dollar at 100 rubles, a perspective that is outside of science fiction,” said the Nezavisimaya Gazeta while Vedomosti refers him “the journey of the ruble.”

“The nerves even let go in optimistic latter, who still hoped in recent weeks a reversal of course,” wrote Kommersant. According to the business daily, investor nervousness convinced the US Congress to pass an “act of support for freedom of Ukraine” which provides for the grant of aid in Kiev and the implementation of new sanctions against Moscow. This decision puts many rumors in the markets. “” Investors fear runaway spiral of Ukrainian conflict and engagement of Russia in the conflict, which is why they are particularly sensitive to any rumors. “

” It boggles the mind “

Another Russian business daily, Vedomosti, points out that the spectrum of crash of August 1998 prowl more than ever. The central bank has tried yesterday to support the ruble but his efforts were in vain. “Such a collapse in one day, it boggles the mind, it goes beyond panic” says the stock analyst Alexei Mikheev.

The general daily Nezavisimaya Gazeta notes for his part that this fall occurred while oil prices have risen. “If the ruble fall despite rising crude prices, it still will tumble faster with the falling price of oil. Thus, experts anticipate that the Russian currency could soon be exchanged at 100 rubles to the dollar price or euro. “

” Two arguments are pushing experts to continue to make predictions down. First, the oil producing countries do not plan to cut production, even though the price of oil fell to $ 40 (currently around 60 dollars). Then, the Russian authorities have begun to flood the state enterprises rubles, which sooner or later will be on the currency market. “