Friday, November 28, 2008

Russia hikes rates to stop investors fleeing the currency

Russian rates up as rouble falls

Russia's central bank increased its key interest rate to 13% from 12% in an attempt to help stop currency losses. The rouble headed for its largest weekly fall in five years, and has fallen approximately 1.9% this week. For the second time this week, Bank Rossii, the country's central bank, widened the rouble's trading band by about 1% or 30 kopeks. Russia's has spent $148bn (£96.4bn) of its foreign currency reserves since August to stop a fall of the rouble.

Posted by jack c @ 03:10 PM (1192 views)
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13 thoughts on “Russia hikes rates to stop investors fleeing the currency

  • planning4acrash says:

    At what point will that happen here. Or is Sterling heading for zero?

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  • The pound’s going up against evrything at the moment..why?

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  • Russia is a bit of a different case. I don’t think that business with BP went down very well, and for a lot of people they just don’t trust the place so they are getting out.

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  • jamonit said…
    The pound’s going up against evrything at the moment..why?

    Yes…….. Welcome to the Offshore Haven for Currency Exchange.

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  • Must admit I am rather enjoying seeing Russia and Iran eat a bit of humble pie now. Iran is really in the poo and may need to be bailed out unless the oil price goes up.

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  • Q: What should Russia do in order to avoid shocks in relation to a possible economic collapse of the United States?

    A: It should develop the rouble as the regional currency. It should form an efficient petroleum exchange which would sell oil for roubles. Several days ago an agreement was signed between Russia and Belarus on transferring payments for oil and gas to roubles. This is the beginning of establishing the ruble as the regional currency as well. We’ve been receiving our currency from Kazakhstan and Belarus for electricity already. Now our task is to try to make as many rouble contracts as possible for the year 2009 before the end of this year. In this case Russia will be able to escape the growing global crisis. We have to cut the ropes tying us to the financial “Titanic” which, in my opinion, will drown in the nearest future.

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  • Sterling is most definately oversold – particularily against the US dollar… As appetite for risk strengthens, I expect foreign investment by Americans to drive their currency down as they sell out the dollar. But on the other hand, I sometimes wonder whether Sterling may feed the next carry-trade?… In the words of Truman: “Bring me a one-armed economist.”

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  • Whatever else the Brits may do the remainder of this year, please salvage sterling vis a vis the euro. We living on the Continent at the moment salute you.

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  • planning4acrash says:

    Maddison, why you enjoying Russia and Iran suffering? Britain also produces a hell of a lot of oil, a few million barrels a day. Not that the proles would notice. Iran is doing very well, tranferred all its reserves into gold, and, Russia will do just fine once the oil price manipulation breaks down. Its also doing barter sales as a solution. The stuff with BP is because Russia is recognising the threat from the British establishment taking over the Russian economy, because these are the folk that are total parasites.

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  • Please be careful what you say – you could get poisoned by some stuff nobody ever heard of!

    Seriously, do you trust the government (Putin’s mates)?

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  • alan – not sure who your post is directed at

    but are you suggesting Brown is a better bet than Putin

    Why is there so much prejudgement about Russia?

    I attended a scientific conference a couple of years ago with six speakers

    four Americans who were OK, a dutchman who was more than OK and a Russian who put them all to shame.

    Konstantin Korotkov, a great human being.

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  • planning4acrash says:

    Wall street bankers funded Stalin and the subsequent Communist state. America propped up Communism via subsidized grain exports. If they hadn’t Communism would have collapsed decades earlier. The broken state that is Russia, was created by the Anglo American empire. Putin may well be trouble and a globalist, but, the Russian people, well, they are making great strides and have been a peaceful nation relative the Britain and America of late. All recent manouvres appear to be in response to the missile shield and the sneak attack against Russian UN peacekeepers based in Georgia, a sneak attack run by America, Mossad and Britain.

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  • Looking forward to the day when all peoples of the world are equally thought of, entitled and respected. When success for one is success for all. We all suffer from negative competition and elect leaders who are invested in these backward ideals. It’s time to elect leaders who want the best for all rather than the few who pay for them to be in power.

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