Thursday, August 13, 2020
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A new crisis looms ahead?
MOSCOW - A strong ruble is not a blessing to most Russians, who have already lost about $5.5 billion as the ruble appreciates against the U.S. dollar, Nezavisimaya gazeta reports. As the dollars maintains its downward trajectory against the ruble, hitting its lowest value of 29.35 rubles on Dec. 16, financial experts are predicting panic among holders of dollar, and a looming crisis in the economy at large if the rate falls to 23-25 rubles. The Central Bank continues to support the ruble in order to fight inflation and keep it within the official forecast of 12 percent. However, experts say such policy harms the manufacturing sector of the economy as well drains money from individuals — who, according to some estimates, are hoard about $50 billion under mattresses and about $28 billion more in banks. The experts warn that if all holders of dollars simultaneously decide to get rid of their dollar-denominated assets in exchange for rubles, then, such a move might put a huge burden on the local economy.
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