Arab Today, arab today russia spends bn to prop up ruble
Last Updated : GMT 00:29:47
Arab Today, arab today
Arab Today, arab today

Russia spends bn to prop up ruble

Arab Today, arab today

Arab Today, arab today Russia spends bn to prop up ruble

Russian ruble outside an exchange office
Moscow - AFP

Russia stepped up its defence of the ruble on Wednesday as it sought to halt a run on the currency and stem the worst financial crisis of President Vladimir Putin's 15 years in power.
The intervention comes as Washington prepared to pile further sanctions on Russia over its support for the separatist insurgency in Ukraine, which have combined with falling oil prices to produce the perfect storm for the currency to go into freefall.
The ruble, which lost a fifth of its value in a single day on Tuesday, has lost 60 percent of its value since the beginning of the year.
After opening down around 3.0 percent, it rallied slightly in afternoon trading, trading at 65.96 to the dollar, from 67.88 on Tuesday evening, and at 82.10 to the euro from 85.15.
The rise came after Prime Minister Dmitry Medvedev voiced confidence that Moscow can contain the crisis and the finance ministry said it was selling around $7 billion at its disposal to prop up the ruble.
"We'll do it for as long as it is needed," deputy finance minister Alexei Moiseyev was quoted as saying.
Medvedev told a televised meeting of ministers and industry leaders that Russia "has the currency resources to achieve... all the economic and production goals that you have set."
The central bank announced Wednesday a series of technical measures to ease access to foreign currency and shore up banks, a day after the government compiled a list of emergency measures to stabilise the situation.
The central bank also said it had spent $1.96 billion on Monday in a bid to prop up the currency, taking to over $10 billion it has spent on propping up the ruble since the start of the month.
The Bank of Russia's currency reserves were worth $415 billion on December 5.
Russia's economy had aready been slowing before it annexed Crimea earlier this year and supported insurgents in eastern Ukraine, but the sanctions and the halving oil prices threaten to push Russia into a sharp recession.
Heavily dependent on the export of natural resources, the central bank estimated the Russian economy could contract by five percent next year, before it hiked interest rates that will slow activity further.
The collapse of the value of the ruble will squeeze Russians as most consumer goods are imported.
- End of 'Teflon Putin?' -
The economic storm clouds present a major challenge for Putin and will test his ability to pursue his confrontation with the West over Ukraine.
Putin, who has remained conspicuously silent on the ruble collapse, came into the firing line on Wednesday.
"We've lost the feeling that Putin is a kind of magician who can control everything," wrote the wide-circulation daily Moskovsky Komsomolets, saying the president had heretofore been "Teflon Putin".
Putin is scheduled to hold his annual end-of-the-year news conference on Thursday.
"It's unclear what they want to do and what will happen in the future," said Vyacheslav, a Muscovite in his 20s.
"I think the 1990s will be back," referring to years of high inflation which ended with a collapse of the ruble and the government defaulting when oil prices dropped.
Putin's popularity has so far remained sky high, but his 15-year rule has been marked by relative prosperity and economic stability.
Analysts also warned the corner has not been turned in the crisis.
"This is a very dangerous situation," wrote the Vedomosti business daily in an editorial, warning of a "panic" mood.
"It could be just days before a full-on run on the banks by account holders," it added.
Meanwhile Alfa Bank said "calming the population and preemptively addressing any banking sector issues is of the utmost importance, especially ahead of the weekend."
The central bank's strategy faced harsh criticism on Wednesday.
"The central bank has buried the ruble," Nezavisimaya Gazeta daily said on its front page, while Noviye Izvestia daily wrote that it could not stop the fall.
Showing an apparent split in government, Deputy Prime Minister Dmitry Rogozin complained that interest rates were now too high for the defence industry, which he oversees, after the central bank hiked them by 6.5 percentage points on Monday in a failed attempt to stabilise the ruble.
"17 percent, as was 10 percent, is an insuperable barrier for the development of (the defence) industry," he wrote on Facebook.

 

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*

Arab Today, arab today russia spends bn to prop up ruble Arab Today, arab today russia spends bn to prop up ruble

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
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