Russia Ruble Crisis: Continues ruble collapse
The drop in oil prices and decline in value of the ruble could stand the Russian budget 331 billion rubles (six billion dollars) in 2015, reported Russian media on Tuesday, which is the message of leaders of the Russian Audit Chamber, and also prompted the World Bank to lower forecasts of Russian economic growth.
Mikhail Fradkov the head of the Russian foreign intelligence service / SVR / thinks that Washington and its allies have a policy of regime change toward Russia; deliberately impose sanctions and manipulating the price of oil attack rubles. Fradkov has warned that Moscow is aware that the US attempt to overthrow the government of Russian President Vladimir Putin. “This desire is observed and it is a little secret. No one wants a strong and independent Russia,” said Fradkov. He believes that the drop in oil prices on the world market is partly due to US actions, transferred television “Russia Today”.
Lower prices of oil which is one of the main export products of Russia put pressure on the ruble, which is further burdened by sanctions. Russian ruble since the beginning of the year lost 39 percent of value against the dollar, according to nezavisne.com.
Putin, in his address to the Federal Assembly on Thursday in Moscow said that the government knows exactly who profited thanks to speculation against the Russian ruble and that the government and central bank have the tools to punish them.
Russian ruble fell to a record low against the dollar at a time when investors are afraid of further sanctions against the country. As reported by “BBC”, the ruble felt to 37.03 per dollar on Friday, which is its worst since the value of the currency restructured in 1998. The fall comes a few weeks after the Russian central bank announced that it will intervene less in the value of that currency.
Also, the decrease follows after peace talks between the Ukrainian president Petro Poroshenko and Russian leader Vladimir Putin in Minsk. The market believes that the talks were “disappointing” and renewed their concern about the sanctions, said Manik Narain, market strategist.
Bankers warn that the psychological limit of 40 rubles to the dollar is exceeded, but still are numerous experts who believe that disorder will not be drastic. Some Russian banks are due to the constant growth of dollars constrained sales of US currency. Clients can withdraw an amount greater than five thousand US dollars from their accounts only if they ask bank two or three days earlier. In many ATMs there are no dollars, so the US currency is easy to sell but hard to buy, says novosti.rs.
Despite the fall in oil prices, the Russian economy still stands well – the level of unemployment is among the lowest and there are more and more foreigners who come for economic reasons, according to Russian portals.
In the period January – September this year in the budget of the Russian Federation was a surplus of two percent of GDP. Unemployment in big cities is only eight percent.