Russian ruble collapses after biggest rate hike since 1998 fails to save currency

The ruble is collapsing. Russia’s currency fell to a new record low of 73 rubles to the dollar on Tuesday after opening 8% stronger following Russia’s central bank raised rates by 650 basis points to 17% at 1am.

In a worrying sign for the Bank of Russia, the currency remains volatile quickly reversing the morning’s gains and snapping back to move over 12% weaker from its opening price at the time of writing.

h/t Marvin

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  • David Murrell

    I realize that there are many BCFers who support Vladimir Putin, and perhaps some of his polices against Muslims deserve support. But at the end of the day he is a fascist, who thinks and acts like a fascist. One thing about fascists is that they have no mental idea about how to compromise. Here, Putin is incapable of coming to an agreement with Saudi Arabia to cut back on oil production. So both countries — Russia and Saudi Arabia — can stew in their self-made broth, and both of their economies can burn up, as far as I am concerned. A pox on both of them.

    • Pete_Brewster

      David, all fascist means any more is “someone who governs in the interest of his own people and not that of Wall Street, Frankfurt and Riyadh.”

      Wall Street, Frankfurt and Riyadh would cheerfully see Putin in hell and the Russian people sent right behind—or, failing that, expelled to Siberia to make room for Muslim settlement, just like they plan for western Europe. What’s there to compromise on? Precious little more than Israel has to compromise on with the Arabs.

      Comrade Erika wants free Russian oil to prop up her collapsing GDR 2.0? Putin will gladly see her in Dresden.

      • Putin isn’t interested in his own people. Wake up!

        • Bataviawillem

          Can say that for Canadian government to, if I see how are they giving passports.

          • Putin has gold. I’m sure his “Christian principles” will kick once everything is kaput and he is on a plane to elsewhere.

    • I wouldn’t say “many”, Dr. Murrell. Half-a-dozen regulars at most.

      And, yes, “fascist” has a reasonably specific definition, which is not “anyone Pete doesn’t like”.

      • DD_Austin

        Actually using “fascist” is wrong, both in it’s usage here* and it’s
        intended “loaded” PC usage**

        * Putin is not a fascist, he is a Russian and follows the same historical
        trends and actions all Russians have followed since the growth of Moscowy into a nation centuries ago. He is a Russian Czar and acts
        like one. Idealogy isn’t driving his actions.

        ** People who use “fascist” usually do fall into the “anyone Pete
        doesn’t like”. smear group.

        • No, Putin is a KGB agent, through and through.

          • DD_Austin

            That’s his method, not his mission.

          • That is his method AND his mission.

            Everybody thought Stalin was a great guy, too, and then Germany and Japan surrendered.

            If we can’t lean from history, we are done.

        • I agree, the word “fascist” is routinely (to say the least) overused. It essentially has no meaning outside mid-20th -c. European politics. And even then, much of it is up for grabs.

          (I’m not claiming to be a linguist or a capable historian or anything like that. But “fascist” does actually have a historical meaning and context and etc. which everyone ignores because they just use it as a pejorative and that irritates me.)

      • b_marco

        I betcha is more like half. But whatever, own it.

        • I’m not sure, Marco. I have to go off somewhere about ten minutes ago, so I can’t do any immediate responses, but I doubt it’s anywhere near half.

    • Sean

      Do you want to know why people would support Putin? Find me another pro-straight, pro-Christian, pro-marriage (not that fake gay marriage), nationalistic and strong leader.

      • Yeah well Stalin was a Strong Leader. Frankly I think it’s all the Russians understand. But that doesn’t make it admirable.

        • Sean

          You’re either willfully ignoring the first four parts of that or Strong Leader was the only thing you could nitpick.

          • Well, I think I can address that partly. I don’t really want a “pro-Christian… leader” as such. That level of enforced religion isn’t desirable from in government of a free people. (BTW, was Putin a Christian during all those years he was rising through the ranks of the KGB?)

            The rest of your comment seems to come under the same banner. You want a strong, benevolent dictator. I don’t think any kind of dictator is desirable. But perhaps Russia can’t be ruled any other way. I don’t have to admire it.

          • Sean

            No, I don’t want that. I want a leader who speaks up for Christians since, well, Christianity is largely the basis of Western Society. Harper doesn’t, Zero doesn’t, Merkel doesn’t, Abbott sorta kinda does. When we get immigrants, Muslims and those antithetical to Western Civ to the back of the bus. I want a leader who speaks up for the majority who are straight instead of pandering and doing whatever is possible to cater to 3% of the population that’s gay. Whether he’s Christian or not is irrelevant; the Russian Orthodox church has came back to the forefront from its exile to the fringes of society and supported by Putin himself.

            Stong, benevolent dictator is a strawman of the worst kind. You’re telling me that Reagan, Bush I, Thatcher, Diefenbaker, Truman, et al are just “strong, benevolent dictators”? Full disclosure: I’d rather have constitutional monarchy than democracy.

            There’s a reason why Putin gets support in the West: he’s doing and
            saying the things that the majority wants to have said. Gay propaganda? Nope. Gay “marriage”? Nope.

          • b_marco

            Actually Stalin was all of those things. Look up “Socialism in One Country” for instance. The eternal pragmatist, he adjusted his platform to line up with the social values of the every-man. And the original Bolshie atheist, free-love, internationalist elements didn’t do so well in the long run.

            http://calvertjournal.com/images/uploads/articles/11-13/Soviet_feast/_large_crop/cookbook_2.jpg

        • Clink9

          I would move there if I believed what they do. Why not?

      • Yes, Putin has journalists killed because he is a Christian.

        • Sean

          Again, I never stipulated he was. He stands up for Christians and the Church. Whether he is or not isn’t important.

          If you can’t see the good he does do/did because of “OMG, Russian”, I can’t help you.

          • Oh, no, he doesn’t.

            When Putin starts liquidating priests, are you still going to believe this tripe?

            Given your paranoid simple arguments, probably.

    • THANK YOU!

  • Hard Little Machine

    Sounds like Latvia, Estonia, Lithuania and the rest of Ukraine will have to be ‘protected’ from anti Russian fervor soon. When your country is broke and needs money what better way to fix it than to take someone else’s stuff. Good thing the EU decided Hamas is no longer a terrorist organization yesterday. That should fix everything.

    • Exile1981

      Don’t forget Poland; Russia just finished a massive military maneuver that involved 5000 troops and tanks along the Polish/Russian/ Lithuanian border and involved 55 ships right at the edge of Polish international waters.

      • ☭ Vladimir Putin ☭

        Who could forget Poland?

        • Exile1981

          Evidently not you Vlad; and put your shirt back on your scaring Turdeau.

  • mauser 98

    other news says Vlad is selling gold (?)
    Vlad should be more diversified

  • Pete_Brewster

    Sorry to disappoint everyone, but the ruble is back below the psychological barrier of 62 (“Why is Pootpoot like the ruble? Both are 62!” “ROFL!”) today. Exporters started taking profits on the windfalls they’d earned on foreign exchange.

    • Minicapt

      But it still hasn’t crossed the psychological barrier of ’60’, much less the barrier of ’58’.

      … $242,487,704,918 …

      Cheers

  • Blame Putin.

    He had a bailout for Russian banks:

    https://ca.finance.yahoo.com/news/putin-just-announced-massive-foreign-200700766.html

    He stockpiled gold:

    http://goldinvestingnews.com/47209/putin-stockpiling-gold-as-russia-braces-for-economic-war.html

    Russia’s economy is largely oil and gas.

    He invaded Ukraine.