Russia’s Ruble Hits New Bottoms
The Russian ruble declined to the new record low level against the euro and the 2-year low against the U.S. dollar today as the country’s central bank allowed further depreciation of the ruble to stimulate the exporters.
The Bank of Russia allowed the national currency to devalue by about 1 percent against the
With the Urals blend of crude oil losing almost 77 percent of its value, which is the Russia’s main export, the country will experiencing one of the worst recession next year with the high probability of the budget deficit. The lower currency rates will stimulate the exporters’ production of oil and metals (another important part of the Russia’s exports).
USD/RUR rose from 27.777 to 28.667 as of 10:09 GMT today, while EUR/RUR went up from 38.770 to 40.324.
Earlier News About the Russian Ruble:
- Russian Ruble Near 3-Year Low vs. Dollar (2008-12-05)
- Russia May Stop Using Ruble to Fight Inflation (2008-01-30)
- Russian Foreign Currency Reserves Continue to Grow (2007-11-29)
December 27th, 2008 at 2:16 pm
The russian ruble maybe a bite lowbut their economy is ten fold better then the US. The US currency is just still living of the might of the US military strenght. THe doomday is not too far for the US
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Andrei Moraru Reply:
December 27th, 2008 at 2:47 pm
How do you measure the “goodness” of the Russian and U.S. economies to say that the first is “better” than the latter?
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December 28th, 2008 at 7:24 am
Well to start they are not in debt of ten trillion dollar. Which the future genarations of US citizen need to pay. Obama is already planningto add another trillion dollar to the debt. Already most of the debt is owned to China and India
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Andrei Moraru Reply:
December 28th, 2008 at 9:21 am
So, the low national debt is the indicator of the sotrng economy? So, Eritrea has a strong economy? Don’t forget that the U.S. still has the biggest GDP and industrial production.
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December 29th, 2008 at 7:47 pm
No Longer EU has a bigger GDP and a lower debt ratio compared to US. Russia on the other and hand has lower population and more natural wealth then the US
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Andrei Moraru Reply:
December 29th, 2008 at 8:37 pm
EU is not a single country. It’s also not a single economy. The abundance of the natural resources doesn’t make the economy strong. Japan has almost no useful resources and U.K. too but they are very powerful economies.
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December 29th, 2008 at 8:52 pm
Look at both Uk and Japan today,nothing to show EU is regard as as a economy bloc which hold a single passport .All the citizen can travel and work in each other countries and has the strongest currency Euro in term of circulation and confidence.. Which is like a country without any borders. When Fed Reseve Chirrman failed to have the US dollar confident back on the market. He work very hard on the weekend with the ECB and the Russian to help bail out the Freddie Mac and Fanni Mae with 200 billion dollar bail out. Now it is China & India bailing out US again buying TB from the Fed reserve. Shows how strong the US economy is.
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Andrei Moraru Reply:
December 29th, 2008 at 11:23 pm
Actually it really does. Without the irony. And the EU isn’t the single country and not all EU countries use the euro as their currency.
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December 29th, 2008 at 11:46 pm
Yes and the US is such a great counrty witha ten trillion dollar debt. More like a third world nation with load of debts. The EU 27 nation out of which 16 all ready use Euro and the rest are on its way. By 2020 the US dollar will be more like the Zimbabwe dollar if the US does not learn to live within its means It needs to embraze more socialism and stop the hyprocrisy of capitalism. Bailout companies and bank failure. 25 bank have failed this another 75 (2009) on its way, after banks auto maker, retailer chain are on its way for handout, then will come the fast food chain and the list goes on.
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Andrei Moraru Reply:
December 30th, 2008 at 8:37 am
Actually social policies caused such a large debt. And bailing out the industry-core companies is also a socialistic mean to preserve the employment (almost all EU countries did that too). By 2020 we’ll see what happens to U.S. dollar
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December 30th, 2008 at 2:02 pm
Yes US is in debt not helping the 31 million people who live off food stamp but the rich people and corporate getting tax brakes and bailout Like AIG, Citi, or Big 3 who travel in private jet and ask for bailout money from congress. If the US strat helping its own vast poor citizen it is social polices that will not get them into debt rather be out of debt. example Canada huge social poloices universal medical care Surplus Fed budjet for the last 12 years and no rich banks to be bailedout
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