Project Canada wrote:
America continues its economic assault against Russia
Russian currency dives below 65 against euro first since March 20
The euro has gained 90 kopeks to hit 65.07 against the ruble in the first hours of trading on the Moscow Exchange Monday. The last time the Russian currency dipped to below 65 was on March 20.
Against the greenback, the ruble was trading at 58.8 at 11:00 MSK.
The Russian currency continued to follow oil’s route on Monday as Brent crude fell to $54.60 a barrel and the WTI was down at $48 a barrel.
May I ask why new members cant post links to other websites like news for 7 days from account resgistration? thank you
As much as the currency devaluation will hurt average consumer, this is what Russia gets of having a free floating currency. Speculators tied it to oil so Rouble will drop if oil drops. Has nothing to do with USA.
This will more likely help increase export so industries will do better, but the main economic activity is consumer demand, and a currency that fluctuates as much as the Rouble does when oil fluctuates will not help consumers at all. We are seeing this here in Canada and Australia as well.
Maybe it is time to look at a two currency system in Russia like how Cuba did it. A Rouble like what they have now (free floating) for import/export/investments and a rouble for domestic consumer use that is fixed. Because Russia wont gain both benefits with a free floating currency that speculators ties to oil. And lets face it. Russias worst of the economic performance which helped create the issue but solving it as well, is/was domestic consumers.