At the end of October 2014 Russia faced the unprecedented devaluation of the ruble
The main reasons for the fall of the Russian ruble:
- Falling oil prices in the world
- US and EU sector-wide economic sanctions and personal sanctions
- Outflow of investors and capital – up to 100 billion for 2014
For 1 day Russian Central Bank sold 2.928 billion dollars from foreign-exchange reserves trying to stabilize ruble before public holidays on November 1-4, 2014.
That means Russian Central Bank has been spending foreign-exchange reserves:
- 33 000$/sec
- 2 000 000$/min
- 122 000 000$/hour
- 2 928 000 000$/day
Foreign-exchange reserves of Russia in 2014 reduced from 509 billion USD to 428 billion USD.
It is a five-year minimum since October 16, 2009
After public holidays on November, 5 Central Bank of Russia refused to more than 350 million per day currency interventions. USD to RUB exchange rate immediately began to growth to 47.9 rubles per dollar.
It is a minimum exchange rate since the time of Russia’s debt default in 1998.
For this moment we see ruble panic in Russia:
- Russians are actively buying cash dollar. Russian press reports about queues at the currency exchange
- on the black market USD to RUB exchange rate = 50
- the largest bank in Russia Sberbank inhibits the withdrawals of big deposits and requires information about the future appointment of withdrawals of funds
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