Russian ruble plumbs new depths against dollar

[Zorro]

Source: AFP

Russia's ruble on Thursday continued to plummet to new record lows against the dollar, tumbling by over 4 percent beyond 85 to the greenback on falling oil prices.

The ruble -- which has already been battered over the past 18 months by low energy prices and Western sanctions over Ukraine -- also weakened to over 93 against the euro.

Russia's recession-hit economy relies on oil and gas for over half of its budget revenues and the authorities are coming under increasing pressure to act to stave off further damage to the currency.

The Kremlin insisted that the ruble's plunge was "not a collapse", insisting the authorities would be able to stop the rot.

Read more: http://news.yahoo.com/russian-ruble-drops-over-3-plumbs-low-against-080916276.html

[pampango]

1. Moscow Times: Kremlin Denies 'Collapse' as Ruble Plunges to New Record Lows

The ruble weakened to a new record low against the dollar on Thursday as the latest falls in global oil prices threatened to worsen Russia's economic slump and the Kremlin sought to play down fears of a currency collapse.

The ruble plunged from about 82 to the U.S. dollar to more than 85 shortly after midday — taking its losses so far this year to 14 percent, and marking its weakest since redenomination in 1998.

The ruble's falls come as the price of Brent oil fell below $28 per barrel. Global oil prices have fallen some 70 percent over the last 18 months due to global oversupply and fears over economic growth in China, a key driver of global demand. Oil is Russia's most important export.

So far, however, there has been no repeat of the panic of late 2014 when the rapid weakening of the ruble almost caused a run on banks. Russians have remained calm, with First Deputy Prime Minister Igor Shuvalov quoted by the Rambler News Service advising people on Wednesday to “spend less time looking at exchange rates.”

http://www.themoscowtimes.com/business/article/kremlin-denies-collapse-as-ruble-plunges-to-new-record-lows/556446.html

[saidsimplesimon]

2. The Kremlin taking "plausible deniability" to the lowest level?

Sorry, saying it does not make it so.

The Russian people may not be able to express it, but, they must know that the 1% rule Russia these days?