Since the mid-1990s, the Russian rouble has suffered two major shocks from which the currency has never fully recovered: the Asia crisis in the late-90s and then the global financial crisis in 2008. The fate of the rouble after the latest hit — the ongoing Ukraine crisis — should not prove any different. The chart below from Bank of America Merrill Lynch shows why Russia probably won’t be able to unwind the rouble’s recent collapse in the foreseeable future. The graph shows that each time the currency has taken a knock, it holds onto those losses against …read more
Source: Business Insider
