Russian ruble about to cliff dive

The Russian government has given up trying to prop up its sagging ruble, and will instead do a “dirty float”

“A dirty float would look like it was a free market but the central bank would still have a measure of control”

By doing this, their central bank has already admitted they’ve lost control.

Anyway, we love the concept of making something look like it is a free market. We have no doubt that the ruble will slowly commence its climb to attain the phenomenal exchange rate of the Zimbabwean dollar’s $100 trillion/$1 US. At least this will allow the state to inflate all its problems and while a repeat of Russia 1997 is almost guaranteed, it will let the country have a fresh, post bankruptcy start in a sub-$50 oil world.

All of this will be made worse by the oligarchs / mafia moving every asset they can out of the country.

One Response to Russian ruble about to cliff dive

  1. Olga Mon, Jan 26, 2009 at 5:01 pm #

    What you say is true. Many Russians are very concerned about the falling ruble and we have noticed a rapid acceleration in their trying to purchase assets outside Russia so as to convert to other currencies.

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