18.12.2014 - Russian currency collapses: rouble trouble
Will Russia's economic woes finally force Vladimir Putin to stop his adventurism and concentrate on problems at home? Russia’s attempt to defend the rouble by pushing up interest rates has failed miserably, as such reactions often do. After a slight rally following the central bank’s intervention, the currency was on the slide once more because the economy’s problems are far more deep-seated than can be dealt with through monetary policy alone. The fall in oil prices has painfully exposed the Russian economy’s dependence upon world consumption at a time of falling demand. Moscow has also found itself at the mercy of Saudi Arabia, which could have pushed Opec to cut supplies and restore prices, but chose not to. That was mainly to see off the threat from American shale, but also gave the Saudis the chance to hurt Russia for supporting their enemies in Syria and Iran...........................................Full Article: Source
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