|Russian Ruble Faces Troubling Times|
|by Tom McGregor||Mon, Jan 27, 2014, 09:20 PM|
The Russian currency, ruble, is struggling to maintain its value and stability.
Pravda reports that, "Already next year, the Central Bank of Russia let the ruble float freely and focus on containing inflation. How will the floating exchange rate affect the Russians? Will the Russian ruble go up or down?"
Maxim Shein, chief strategist of BCS financial group, is quoted as saying that, "If we talk about interest rates on deposits on the market, then, in fact, their level, in general, takes into account the processes and changes in exchange rates that exist. If a person, for example, wants to open a ruble deposit, he or she would get, say, eight percent. Accordingly, a dollar deposit it in this bank would give eight percent, minus insurance against devaluation of the ruble at a rate of six percent, that is, roughly speaking, he will receive two percent,"
According to Pravda, "The Russian ruble has been losing value rapidly. In general, the situation with the national currency of the Russian Federation is alarming. The fact that the Central Bank is prepared to let the ruble float freely and focus exclusively on containing inflation raises many questions too. Can one trust the ruble, or would it be more profitable for the Russians to convert their savings into dollars due to instability? Experts explain that it all depends on the capacity and quality of the savings."
The Russian economy has lost its lustre in 2013, and a recovery does not appear to be imminent.
To read the entire article from Pravda, link here:
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