Tag Archives: Russian ruble

Breaking news – Ruble continues recovery hours before Putin’s Q&A

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The Russian currency has opened higher Thursday, continuing its recovery from the biggest intraday drop since 1998 default on so-called ‘Black Tuesday’.

The dollar was down 65 kopeks at the opening on the Moscow Exchange, while on the stock market, the dollar-denominated RTS index was up 6.5 percent.

That’s just hours before President Vladimir Putin commences his much-anticipated Q&A marathon, in which he’s expected to face tough economic questions about the ruble and turmoil in the financial markets.

READ MORE: 2014 Q&A marathon: Public awaits Putin’s take on watershed year for Russia

Russia’s biggest holding, AFK Sistema was the strongest performer in the market, gaining 38 percent by 10:45pm MSK after it was reported that the company’s co-owner Evgeny Evtushenkov was released from house arrest.

On Wednesday, the ruble jumped 6 percent against the US dollar to finish trading at 60.51 against the Greenback. On ‘Black Tuesday’ the ruble dipped to as low as 80 rubles against the US dollar and hit a threshold of 100 against the euro.

READ MORE: Ruble rumble: Currency gains ground after Tuesday trauma

Experts say the ruble’s strengthening is a reaction to CBR’s anti-crisis package released Wednesday, as well as increasing the key interest rate to 17 percent and a modest recovery in oil prices.

The Central Bank of Russia said it hadn’t intervened in the Russian forex market on Tuesday, after it spent around $2 billion in currency interventions on Monday. That is compared to about $774 million spent in all of November.

 

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Russian ruble becomes Crimea’s second official currency

The Crimean parliament has announced the Russian ruble will become the second official currency of Crimea and will be circulating alongside the hryvnia until it is withdrawn in 2016.

The decision marks the first step in the peninsula’s economic integration with Russia, after Crimea’s citizens overwhelmingly voted for joining Russia in Sunday’s referendum.

“The official currency unit of the Republic of Crimea is the Russian ruble, and until January 1, 2016, the Ukrainian hryvnia would be also the official currency,” the parliament’s official website says.

The parliament has also approved the temporary statute on the Bank of Crimea. “The organization of money circulation and withdrawing them (hryvnia) from circulation on the territory of the Republic of Crimea would be made exclusively by the Bank of Crimea,” the resolution reads. “The Bank of Crimea without any fees performs transactions with budget funds of the Republic of Crimea, as well as transactions regarding public debt management of the Republic of Crimea.”

The key goal of the Bank of Crimea is to provide stable currency circulation, “development and strengthening of the banking system, providing effective and faultless operation of the payment system,” the resolution adds.

The Central Bank of Russia (CBR) will be largely assisting the introduction of the ruble in Crimea, the Izvestia newspaper quotes sources in the CBR. It’ll fix all the technical issues to have the ruble circulating in Crimea within a week. Mobile cash processing centers are ready to be delivered to Crimea, the paper added. The centers would allay threats from for Kiev that grants to the newly independent republic would be cut. The cash centers will provide humanitarian aid in rubles, pensions, grants, as well as effect non-cash payments, which will effectively turn them into local treasuries.

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Russian MPs recall urgent bill to accept new Russian Federation subjects

Deputies of the leftist Fair Russia faction said their original bill had been prepared to ease the entry of the Crimean Autonomous Republic but it turned out that it can happen under existing laws.

The decision to recall the bill was taken after Sunday’s referendum in Crimea in which the overwhelming majority of the republic’s population voted to secede from Ukraine and join Russia. The Crimean parliament has already passed a bill to adopt the Russian currency.

The Russian President and parliament have promised to comment on Tuesday regarding the future of accepting the Crimean Republic into the Russian Federation.

The State Duma statement was prepared jointly by all four parliamentary factions. According to the leader of the Fair Russia party, Sergey Mironov, it will express unconditional support for the referendum results and request the authorities in the Crimean Republic to ensure security, equality and normal social and economic conditions for all residents of the peninsula.

The original Fair Russia bill on bringing new regions into the Russian state was submitted in early March and its sponsors openly admitted that the main reason behind the move was their fear over the fate of ethnic Russians in Crimea.

“To put it in plain text, the bill was initiated by me for the sake of Crimea,” Mironov said. He also expressed confidence that the bill could be passed very fast – within a week after the Crimean referendum.

The suggested amendments make the acceptance of new regions possible without intergovernmental agreements in two cases – if such a move is approved by a universal referendum of the region’s residents, or if the request is made by a legitimate body of state power from another country.

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