USA TODAY: Russia’s ruble traded at 38.8 against the dollar on Tuesday, setting a new historic low. The Russian currency has now fallen as much as 19% since the start of the year…
“Due to isolation from credit markets, there is a lot of buying on the domestic market,” said Alexander Golovtsov, head researcher at UralSib Asset Management. That is driving up the value of the dollar and euro. “To compensate for the effects of this isolation, Russia would need about $150 billion.”
Given an economic slowdown that began last year, the geopolitical effects are likely to hit the economy further, Golovtsov said. “The effect of the credit crunch has only just begun,” he added. If the sanctions continue, “the effect could grow by several times and would cost several percent of the GDP.”… (more)
