Saturday, November 8, 2014

Dollar Shortages Spread Amid Russian Ruble Collapse

Rising demand for foreign currency meant U.S. dollars and euros were unavailable at some Russian banks and exchange points Friday as the ruble went into free fall during morning trading.
The Russian currency nosedived 3.8 percent against the dollar after markets opened, hitting a historical nadir of 48.64 against the greenback and shooting past the 60 rubles to the euro mark for the first time.
Analysts warned that Russia was standing on the verge of a full blown currency crisis amid signs of panic in the population, where memories of a plummeting ruble and runaway inflation during the 1998 default are never far away.
The dramatic rout meant the ruble had lost over 10 percent against the dollar in the 48 hours after the Central Bank announced Wednesday that it was capping market interventions to defend the ruble at $350 million a day.
INC News,08/11/2014

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