Russia’s Central Bank Devalues Ruble for Third Time in Week |

Russia’s Central Bank Devalues Ruble for Third Time in Week

It would seem that Russia is going to NEED to do something quickly in
order to boost the price of OIL.

Dec. 24 (Bloomberg) — Russia devalued the ruble for the third time in
a week, sending the currency to its lowest level against the dollar
since January 2006, as oil’s drop below $39 a barrel dimmed the
outlook for growth.

The ruble, down 18 percent against the dollar since the beginning of
August, weakened 0.9 percent against the U.S. currency to 28.6862 and
1.4 percent versus the euro to 40.1539, near an all-time low.

The central bank allowed the ruble to fall about 1 percent against a
basket of dollars and euros, accelerating the slide after spending 27
percent of reserves, or $162.7 billion, trying to defend the currency
over four months. Oil, Russia’s biggest export earner, lost 4.7
percent on the New York Mercantile Exchange and is down nearly 75
percent since the July high. The government requires oil to average
$70 to balance its 2009 budget.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a61UnlEMIH1c&refer=home

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