Wednesday, December 17, 2014

Russia sells its foreign reserves to prop up the ruble – InfoBAE.com

Russia sells its foreign reserves to prop up the ruble – InfoBAE.com

   
   


 
     

       
       
 
       
       
 
       
 
         
 
       
 
       
 
       
 
        
 
       

The Russian Finance Ministry said Wednesday it will sell foreign currency in an attempt to stop the collapse of the currency.

“The ruble is extremely undervalued ,” the press service of the Ministry of Finance, without specifying the amount or type of assets that was selling , says the Russian news agency Interfax.

The Bank of Russia reported that last December 15 held interventions in the foreign exchange market amounted to 1,961 million dollars (1,577 million euros), bringing to more than 80,000 million (64,360 million euros) the volume of its defense of the ruble in so far this year. The Russian currency 9.5% and 7% on Monday depreciated on Tuesday.

The Bank sold every day several billion dollars in foreign currency, but so far has garnered little success.
Russian economy 1170 ( 4) .jpg

After his announcement, the Russian currency strengthened to 81.61 rubles for one euro, compared to 85.15 on Tuesday night, and 65 15 to the dollar, compared to 67.88 yesterday.

In an emergency meeting held on Tuesday, the Russian government defined a series of measures to ensure the stability of the financial sector.

Specifically, the government support to banks, battered by a collapse of the ruble unprecedented since the bankruptcy of Russia in 1998.

The Russian Ministry of Economy already warned last week that the national Gross Domestic Product (GDP) will shrink by 0.8% next year, driven by oil prices, international sanctions and structural problems.

     


     

Infobae

     

 
   


 
   
   
   
   

   
 
   
 
   
   

   
   
   
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