Putin Tries to Reassure APEC Investors Amid Ruble Record Lows
- Speaking in front of the Asia Pacific Economic Co-operation summit in Beijing, Mr. Putin asserted that the Rouble’s drop was “absolutely not related to fundamental economic reasons”, promising an equilibrium "soon.”
The Russian President, Vladimir Putin, has tried to convince the world that the rapid drop in the ruble Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term rates is only a passing problem due to speculators and does not represent a fundamental shift in his country's economic situation. Speaking today at the Asia-Pacific Economic Co-operation (APEC) Summit in Beijing, Mr. Putin assured the audience that the actions taken by the Central Bank of Russia (CBR) will be successful in stabilizing the currency.
“We are currently seeing speculative jumps in the exchange rate, but I think that this should stop soon,” Mr. Putin stated. According to the Russian President the ruble’s sharp drop was “absolutely not related to fundamental economic reasons,” as he asserted that “equilibrium will come soon.”
The Russian currency has dropped in value as much as 30% against the US dollar during the last year and 15% over the past month. The country's economy is suffering a trifecta of calamities as the war in Ukraine, Western sanctions and low oil prices all occur at the same time. On Friday, the ruble hit its weakest-ever level, 48.6 against the greenback.
USD/RUB Daily Chart
The Russian leader tried to convey a sense of business as usual and a feeling of confidence in face of all the difficulties. His plan seems to be to reorient Russia's economy toward the East, as Putin has stated that Russia and China will increase the amount of trade to be settled in yuan instead of USD. There have already been reports coming out about Russian firms planning to abandon Western capital markets, such as London, and scouting Chinese venues to operate in following the sanctions.
In keeping with the markets' demands, Mr. Putin has so far ruled out capital controls, despite reports of capital flight amplifying the ruble's decline. He has promised to keep Russia's debt levels down and also said that Russia planned to use part of its sovereign wealth reserves to attract foreign investment. "There will be no increase of sovereign debt. We are planning to keep it at a safe, manageable level of below 15% of GDP."
The Russian President, Vladimir Putin, has tried to convince the world that the rapid drop in the ruble Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term rates is only a passing problem due to speculators and does not represent a fundamental shift in his country's economic situation. Speaking today at the Asia-Pacific Economic Co-operation (APEC) Summit in Beijing, Mr. Putin assured the audience that the actions taken by the Central Bank of Russia (CBR) will be successful in stabilizing the currency.
“We are currently seeing speculative jumps in the exchange rate, but I think that this should stop soon,” Mr. Putin stated. According to the Russian President the ruble’s sharp drop was “absolutely not related to fundamental economic reasons,” as he asserted that “equilibrium will come soon.”
The Russian currency has dropped in value as much as 30% against the US dollar during the last year and 15% over the past month. The country's economy is suffering a trifecta of calamities as the war in Ukraine, Western sanctions and low oil prices all occur at the same time. On Friday, the ruble hit its weakest-ever level, 48.6 against the greenback.
USD/RUB Daily Chart
The Russian leader tried to convey a sense of business as usual and a feeling of confidence in face of all the difficulties. His plan seems to be to reorient Russia's economy toward the East, as Putin has stated that Russia and China will increase the amount of trade to be settled in yuan instead of USD. There have already been reports coming out about Russian firms planning to abandon Western capital markets, such as London, and scouting Chinese venues to operate in following the sanctions.
In keeping with the markets' demands, Mr. Putin has so far ruled out capital controls, despite reports of capital flight amplifying the ruble's decline. He has promised to keep Russia's debt levels down and also said that Russia planned to use part of its sovereign wealth reserves to attract foreign investment. "There will be no increase of sovereign debt. We are planning to keep it at a safe, manageable level of below 15% of GDP."