Russian Rouble sinks past 101 per U.S. dollar, Kremlin blames loose monetary policy
Russian Rouble sinks past 101 per U.S. dollar, Kremlin blames loose monetary policy
President Vladimir Putin's economic adviser rebuked the central bank on Monday as the rouble slid past 101 per U.S. dollar, blaming loose monetary policy in a sign of growing discord among Russia's monetary authorities.
This is the best summary I could come up with:
"The central bank has all the tools to normalise the situation in the near future and ensure that lending rates are reduced to sustainable levels.
On Monday, the bank said it saw no financial stability risks from the rouble's weakening and gave another hawkish signal that a rate hike is possible soon.
The rouble has chartered a turbulent course since Russia invaded Ukraine, slumping to a record low of 120 against the dollar in March last year before recovering to a more than seven-year high a few months later, supported by capital controls and surging export revenues.
"The weaker rouble is a damning indictment of Russia’s war on Ukraine," Timothy Ash, a London-based senior sovereign strategist at BlueBay Asset Management, said in an email.
Last week, Russia effectively abandoned its budget rule, with the central bank halting the finance ministry's FX purchases to try and reduce volatility.
"The central bank is not fully in control," independent Moscow-based economist Ian Melkumov told Reuters, although it has aggressive tools that it is currently reluctant to use.
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