Russian economy falling apart: Rouble falls to all time low against the dollar and euro. Russian cen
41 replies, posted
[img]http://news.bbcimg.co.uk/media/images/73323000/jpg/_73323348_73323345.jpg[/img]
[i]It doesn't matter about the rouble, what matters is our plan.[/i]
[quote]Russia's rouble has fallen to a fresh all-time low against both the dollar and the euro after the political turmoil in Ukraine intensified.
The rouble fell 2.5% to 36.5 roubles against the dollar and 1.5% against the euro to 50.30.
Stocks on Moscow's MICEX main stock index also fell more than 11%.
The Russian Central Bank was reported to have sold up to $10bn (£6bn) of reserves to support the rouble, according to Reuters news agency.
The Russian Central Bank said last month that its international reserves totalled $493.4bn as of 21 February.
The sharp falls came as Russia's central bank hiked its key lending rate on Monday to 7% from 5.5%.
"The decision is directed at preventing risks to inflation and financial stability associated with the increased level of volatility in the financial markets," the central bank said in a statement.
Neil Shearing, chief emerging markets economist at Capital Economics, said the success of the central's banks moves would "depend largely on political rather than economic developments".[/quote]
[url]http://www.bbc.co.uk/news/business-26414285[/url]
[quote]Economist: Russia risks becoming 'sick man of Europe'
Russia's economy could suffer long term damage if turmoil in Ukraine continues, an economist has warned.
The country's currency, the rouble, has fallen to an all-time low against the dollar and euro.
Neil Shearing, emerging markets expert at Capital Economics, said the country's economy had become "increasingly vulnerable and weak".
He told BBC Radio 5 live's Beccy Meehan: "It's going to go from potentially being one of Europe's star performers to being the sick man of Europe unless we see some big economic reforms."[/quote]
[url]http://www.bbc.co.uk/news/business-26418539[/url]
russia still has massive foreign reserves through.
[url]http://www.forbes.com/sites/gregsatell/2014/03/02/putin-is-losing-in-ukraine-and-thats-our-biggest-problem-right-now/[/url]
[QUOTE]Update 1: Reuters reports that markets in Moscow are in near free-fall on Monday. Stocks are down more than 10%. $10 billion of reserves have been burned through and interest rates have been hiked. The Ruble has fallen 2% to historic lows and there are reports of dollar shortages at street vendors. Russia still has massive foreign reserves of nearly $500 billion, but if the crisis persists, things are sure to get worse.[/QUOTE]
That's actually a bad thing. Worst case scenario is a global economic collapse... again.
Fucking a' Russia, stahp.
Maybe they will call off the invasion if it ruins their economy.
Apparently alienating every other country in the world is bad for business. Who knew?
[QUOTE=Thlis;44114369]Apparently alienating [B]every other country in the world[/B] is bad for business. Who knew?[/QUOTE]
lets not get ahead of ourselves here, i don't think latin america, africa, most of asia cares much about that.
Wonder how long it'll take the Russian government to spin it as Western sabotage.
[QUOTE=Sgt Doom;44114531]Wonder how long it'll take the Russian government to spin it as Western sabotage.[/QUOTE]
i'm sure RT is coming up with something as we speak.
Welcome to the international financial world, you can no longer just do what you want as a nation and not expect serious repercussions to your economy, stock, business and economy.
It technically is sabotage. It's just external and entirely caused by responses to their relatively stupid actions.
[img]http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2014/3/3/1393833293083/5058e8c6-8f23-4504-a332-72ea0173d1a8-460x207.png[/img]
Picture from last night, any newer pictures?
[QUOTE=JoeSkylynx;44114338]That's actually a bad thing. Worst case scenario is a global economic collapse... again.
Fucking a' Russia, stahp.[/QUOTE]
I would assume it's a good thing in the short term though, buying gas from Russia ought to be cheaper right now.
so in a sense the crimean occupational army (cas they aren't russian if they don't have their russian patches!) is powered by burning russian roubles?
halarious, sucks to be putin when his billonare benefactors are soon out of cash and pissed off
[editline]3rd March 2014[/editline]
i bet that $60-70 billion they spent on the olympics would come in handy right about now
[QUOTE=Sableye;44114702]so in a sense the crimean occupational army (cas they aren't russian if they don't have their russian patches!) is powered by burning russian roubles?
halarious, sucks to be putin when his billonare benefactors are soon out of cash and pissed off
[editline]3rd March 2014[/editline]
i bet that $60-70 billion they spent on the olympics would come in handy right about now[/QUOTE]
i wouldn't be surprised if like 95% of the 50 billion that were spent in sochi, were embezzled to bribe said billionaries into supporting putin.
Well that's what happens when you pull stupid shit like this. How's ya gonna go through with that "surrender by 3AM, Crimea" bullshit now, Pretty Pansy Princess Putin? Not very easily, that's how "tovarisch".
So here's a question: Would an economic collapse make the Putin administration more desperate to draw the Russian population away from their financial troubles and more towards a "oh no we're going to waaaaar" kind of situation?
Foreign conflict is usually what despotic leaders use to distract the population from problems at home, isn't it?
And year ago the USD was 26 Roubles. Fuck you Putin, I don't really care about your geopolitical gambit, but shit thats happening to our economy is what I feared the most. I hope I'll still be able to leave to study abroad year later, despite recent tensions, and return only when he is dead of old age. Cause lets face it - he isnt going to forfeit his position.
[QUOTE=JoeSkylynx;44114579][img]http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2014/3/3/1393833293083/5058e8c6-8f23-4504-a332-72ea0173d1a8-460x207.png[/img]
Picture from last night, any newer pictures?[/QUOTE]
I thought that was where the graph cut off at the end, and then I looked at it in more detail.
All I can say is: oh dear.
[QUOTE=JoeSkylynx;44114579][img]http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2014/3/3/1393833293083/5058e8c6-8f23-4504-a332-72ea0173d1a8-460x207.png[/img]
Picture from last night, any newer pictures?[/QUOTE]
Depends on what scale you look at.
Monthly comparison of micex equity indices
[img]http://puu.sh/7hHnZ.png[/img]
Weekly (yay for erasing gains)
[img]http://puu.sh/7hHpU.png[/img]
Daily
[img]http://puu.sh/7hHsF.png[/img]
[url=http://www.micex.com/marketdata/analysis?secid=MICEXINDEXCF&boardid=SNDX&linetype=candles&period=-1d]source[/url]
-snip-
Maybe people losing faith in their state currency? I know bugger all about economics though.
[QUOTE=KorJax;44114907]Meanwhile, in BTC land:
[img]http://puu.sh/7hHkc.png[/img]
Something about currencies/country economic failings seems to always give BTC a big push. Last year's april bubble was pretty much kickstarted thanks to Cyprus's economy failing causing them to rush to BTC.[/QUOTE]
Which is pretty hilarious since as soon as normal currencies float themselves it starts falling again. But lets not have this turn into a BTC.
Soon I'll be able to buy TWO packs of Skittles for that 1$ bill I have laying around.
[QUOTE=Zambies!;44114928]Which is pretty hilarious since as soon as normal currencies float themselves it starts falling again. But lets not have this turn into a BTC.[/QUOTE]
Fair enough, snipped.
If you have any buddies in Russia, now would be the time to send them a couple hundred bucks in American $1 bills :v:
I think this is very bad, economic strains have caused wars in the past...
[QUOTE=ewitwins;44115280]If you have any buddies in Russia, now would be the time to send them a couple hundred bucks in American $1 bills :v:[/QUOTE]
They need to be sending their buddies a couple of hundred quid in £1 coins. 61 rubles to the pound while its 37 rubles to the dollar.
Oh man, Russia now has a hand at crashing the global economy.. Please stop, we all don't want it to happen.
Oh whatever, this is Putin, he's gone batshit crazy so I doubt the economy is one of his concerns right now.
[QUOTE=Rocko's;44115350]Oh man, Russia now has a hand at crashing the global economy.. Please stop, we all don't want it to happen.
Oh whatever, this is Putin, he's gone batshit crazy so I doubt the economy is one of his concerns right now.[/QUOTE]
this is likely to harm europe more than anyone through, since russia can just shut down that pipe, and europe doesn't really have the means to get natural gas from another source in such short notice.
[QUOTE=Wizards Court;44115374]this is likely to harm europe more than anyone through, since russia can just shut down that pipe, and europe doesn't really have the means to get natural gas from another source in such short notice.[/QUOTE]
Good thing we had a warm winter, at least. OPEC and USA can relocate their markets if it is absolutely needed.
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