Russia’s $50 Billion Repo Pledge Fails to Halt Ruble Drop on Oil…IF THE WORLD DROPS THE PETRODOLLAR WE’LL HAVE A HOT WAR IN A WEEK
Investmentwatchblog.com
October 16th, 2014
The ruble slid to a record as the Bank of Russia’s pledge to provide $50 billion of foreign currency through 2016 failed to ease the rout amid an oil slump.
The currency dropped 1 percent to 45.9935 against the basket at 1:48 p.m. in Moscow, having temporarily pared its drop after the central bank said it will offer as much as $1.5 billion of four-week repurchase agreements at its debut auction on Oct. 29. Russia is grappling for ways to ease a local shortage of hard currency exacerbated by sanctions over the conflict in Ukraine.
The foreign-exchange repos “will smooth, but not stop the weakening as the macro and geopolitical environment remain unchanged,” Vladimir Miklashevsky, a strategist at Danske Bank A/S in Helsinki, said by e-mail. “It is impossible and unwise to swim against a falling oil price.”
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