ruble bounce rare ray of sunshine for crisishit russian economy
Last Updated : GMT 03:23:40
Arab Today, arab today
Arab Today, arab today

Ruble bounce rare ray of sunshine for crisis-hit Russian economy

Arab Today, arab today

Arab Today, arab today Ruble bounce rare ray of sunshine for crisis-hit Russian economy

People prepare a sled in the shape of a Russian ruble coin
Moscow - AFP

It's been a torrid time of late for the Russian economy as the fallout from Ukraine and tumbling oil prices have plunged the country into financial crisis.
But an unexpected recent rebound by the ruble has partially reversed months of pain for the nosediving national currency and fired hope among harried officials in Moscow that there might be a light at the end of the tunnel.
Few analysts were betting on a bounce after the ruble lost over 40 percent of its value in 2014 and carried on the slump into this year.
But a drop in fighting in east Ukraine and the steadying of oil prices seems to have combined with the tax payment season and a Kremlin drive to get money repatriated to fire an unlikely recovery.
Since briefly hitting a low of some 80 to the dollar and 100 to the euro in December, and sparking panic among Russians, the ruble has now climbed back to some 57 against the greenback and 62 to the euro.
"The economic situation is still complicated but we are seeing some significant signs of stabilisation," Economy Minister Alexei Ulyukayev said in a rare upbeat statement this week.
With things starting to look up, Ulyukayev predicted that the drop in GDP this year could be less than the 3 percent that is officially forecast -- still dire, but not as bad as feared.   
Inflation has reached a high of around 17 percent but has also appeared to stabilise of late and the finance ministry is already claiming that the recession could be over by the third quarter of this year.
- Oil be back -
Analyst Timur Khairullin at VTB24 said that the ruble's "firm dynamic" was being bolstered by both external and internal factors.
Among them is that fact the time for firms to pay their taxes in the country has only just passed meaning there has been a spike in demand for the ruble.
Also Khairullin said the bump could have been helped by the promise by President Vladimir Putin of an amnesty -- now being considered by parliament -- to try to encourage vast sums being stashed overseas to be repatriated to Russia.
Neil Shearing at Capital Economics said that the most important factor has been the "stabilisation and then rebound in oil prices", but added that the extent of the ruble's earlier plunge was likely an overreaction in the first place.
"The ruble probably overshot to the downside during the sell-off before Christmas. Some form of correction was always likely and now strains in the financial system have started to ease that has come through," Shearing said.
Despite the recent rise Shearing warned that unless oil prices pick up even more then "it’s difficult to make the case for a sustained strengthening in the ruble."
"The economy is sliding into recession, elements of the banking system remain vulnerable and financial sanctions remain in place," he said.
As calm returns to the Russian economy after the panicked turmoil of late last year, some analysts said that this would give authorities breathing space to fend off the worst.
The steadying of inflation meant that for the second time in a few months the central bank was able to cut its key interest rate after a monster hike in December.
"Effectively there is a recession but it is not as deep as we anticipated," said Natalia Orlova at Alfa bank.
"The crisis of confidence isn't getting any worse, and that is good news."

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ruble bounce rare ray of sunshine for crisishit russian economy ruble bounce rare ray of sunshine for crisishit russian economy

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ruble bounce rare ray of sunshine for crisishit russian economy ruble bounce rare ray of sunshine for crisishit russian economy

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday