[Politics] Russia invades Ukraine (24/02/2022)

[Sirnormangall]

Now it's crossed that threshold they may not get back to it for quite a while. I wonder what the next 'support' level target will be.. 0.8 of a cent? .
Russia needs to start comparing the ruble to their future Brics currency

I’m no economist but don’t you need to keep interest rates high to support a weak currency? Double whammy?

 

[Eric the meek]

I’m no economist but don’t you need to keep interest rates high to support a weak currency? Double whammy?

I'm not sure. I'm not an economist either. But one adverse effect of a weak currency, as Joe Blogs explains in post 17,725, is that as your currency declines against other currencies, you are effectively importing inflation, as everything you buy is rising in price as your currency falls.

 

[Triggaaar]

I’m no economist but don’t you need to keep interest rates high to support a weak currency? Double whammy?

Yes, and the high interest rates have protected the value of the currency to some extent. However, the economy is so shot that even with very high interest rates, the currency is still falling. Even the Russian bank buying currency isn't stopping it.

 

[Eric the meek]

'Putin 'worried' about major problems set to hit Russia next year' - Sky News.

Next year? They're happening right now!