The Russian national currency is suffering its worst turmoil since the 1998 default, as a combination of dropping oil prices, trader fears, and reduced access to international financing has sent it into free fall.
Thursday, December 18
The Russian currency edged lower against the US dollar to fix at 60.6 at the close of the Moscow Exchange Thursday. Against the euro, it grew to 74.6 during the day. Overall the ruble continued to recover Thursday, offsetting drastic losses in previous days.
IKEA is suspending sales of kitchen furniture in Russia in order to review prices. The company is considering resuming sales after December 20.
The ruble has been volatile again against the US dollar and euro after Putin’s press conference. The Russian currency has fallen to 61.5 rubles to the dollar and 75.5 to the euro. The main Russian indexes RTS and MICEX have risen seven percent and five percent respectively.
Video: /files/news/34/8d/b0/00/madina.mp4
Audi reportedly also stopping sales in Russia, due to price volatility. Joining Nissan, BMW, Ford, Honda, and Skoda, which also reportedly stopped sales, worried they will lose money on devalued currency.
AUDI STOPS CAR SALES IN RUSSIA DUE TO RUBLE FALL
— Russian Market (@russian_market) December 18, 2014
The ruble showed little movement during the President’s presser, hovering around 61 rubles per dollar. Brent, which rose more than 5 percent to $63 per barrel, did not bring up the ruble along with it.
Russia President says Central Bank has acted “appropriately” but could have made a move earlier. The president said the crisis, in the worst case scenario, will continue for another 2 years.
BREAKING: Russian economy will inevitably bounce back, 2 years in worst case scenario – Putin http://t.co/JeXTILnH5a pic.twitter.com/rxZ25qAIKH
— RT (@RT_com) December 18, 2014
The Russian currency is buoyant ahead of a major public QA session with President Putin. It continued its recovery Thursday to open at 58.3 rubles against the USD and 71.9 against the euro.
READ MORE: Ruble continues recovery hours before Putin’s QA
Wednesday, December 17
Russians are making fun of the ruble crisis, posting pictures showing people rushing to buy things after ‘Black Tuesday’ – the day the ruble lost 20% of its value.
READ MORE: Shopping frenzy, social media fuss and jokes in Russia as ruble collapses
Forex Finland stopped buying the Russian ruble due to market volatility and the currency’s fast depreciation. The company said it would conduct operations in the ruble with existing clients, but won’t buy in from new customers for an indefinite period of time.
Central Bank releases a statement outlining 7 strategies ahead including granting credit to credit institutions, as well as letting banks use the exchange rate from 3rd quarter, shielding them from the ruble’s recent weakness.
Article source: http://www.rt.com/business/215259-ruble-crisis-live-updates/
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