A cold winter lies ahead for Russia

Anybody got a bid?  Ruble versus USD.  Source: thinkorswim by TDAmeritrade.

Anybody got a bid? Ruble versus USD. Source: thinkorswim by TDAmeritrade.

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.

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