Remarkable move in the Ruble… Low of 78 to the USD today, which is about a 40% depreciation (is it fair to use the world ‘devaluation’ here?) in the past week. The relevant quote from Bloomberg:
“Our traders are informing me that we see no bids to buy rubles,” Per Hammarlund, chief emerging-markets strategist at Skandinaviska Enskilda Banken AB, said by e-mail from Stockholm. “I thought 17 percent would give them at least a month of breathing space. We next have to look at the experience in 1998-1999. We are also one big step closer to capital controls.”
Yikes. What impact will this have on the powers that be in Russia?? I presume most of the aristocracy are very much USD-liquid, so this crash in rubles will likely be a bigger problem for the masses. Not good.