English | دری

Russia’s roubel hits its lowest in 16 years

in International Business

Russia’s roubel hits its lowest in 16 years

The Russian roubel has lost more than half of its value against the dollar this year, with hitting its lowest in 16 years this week.

Despite the rise in interest rates from 10.5% to 17% by the central bank, the roubel remained volatile and has lost more than 20% of its value in a week.

The drop in the oil price and stern western sanctions have been the chief factors behind the poor performance of the currency.

The World Bank has predicted Russia’s economy would shrink by at least 0.7% in 2015 if oil prices did not recover.

Raising interest rates may prevent money leaving the country, but it can slow down growth as a result of expensive borrowing.

Technology giant Apple has halted sales of its products in Russia after the roubel went to free-fall.


Tags assigned to this article:
russia economyRussia roubelRussia sanctions

Related Articles

Japan forces through its delayed $1.1tn budget for 2012

Japan’s government has forced through its 2012 budget, after it was stalled by a political battle over plans to double

Japanese firms directly affected amid anti-Japan protests in China

A widespread anti-Japan protest has been staged across China against Japan’s deal to buy a chain of disputed islands in

Germany catches Europe’s crisis fever

Germany appeared to be safe from Europe’s debt crisis, due to the deep reforms undertaken years ago, however recent data

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.