Print

Please login or register.
1 Hour 1 Day 1 Week 1 Month Forever
Login with username, password and session length

[Knit tie]

So apparently the rallying rubles is due to large state-owned exporters selling massive amounts of dollars, party too pay their end-of-the-year tax bill, partly due to an  executive order. Apparently we're talking of about 1 billion dollars a day.µ

However, since no significant raise of the ruble happened at the end of last year, I guess it's mostly the executive order. State capitalism can be useful sometime.

The source goes into more detail than that, metioning that the state-owned companies are supposed to only sell the money that they recieved since October 2014, i.e. that there is no significant cost to this measure, and that the demand for dollars has also lowered significantly recently, further driving the ruble appreciation.

[Sheb]

I guess it could make sense to prevent those companies to hoard dollars. Since they're exporter, they probably don't have too much of a need for hard currencies?

[a1s]

Not a massive need, but you need to pay foreign salaries, office rent and logistical costs. I'd say exports firms have the 2nd largest demand for foreign currency. (And by far the easiest time getting it, under normal conditions)

[Ukrainian Ranger]

Some politicians in Russia think that not repaying foreign debts is a good idea

[LordSlowpoke]

your source is a 404

it is a good source

[Ukrainian Ranger]

Fixed

[Sheb]

That would definitely hurt exposed banks, but I'm fairly certain it'd hurt Russia even more.

[LordSlowpoke]

eh, if they wanna shoot themselves in the foot with a higher caliber firearm who's to stop them

they don't seem to be jumping straight to howitzer level just yet

[Sheb]

Although in all honesty, it's just a proposal by a MP. Pretending its Russian policy is about as dumb as looking at some proposal by a tea party representative and pretending it's US policy.

[Ukrainian Ranger]

Yeah, some Russian MPs are rather weird. And their opinion means nothing. After all only one guy decides what laws Russia should have.

[Knit tie]

That would definitely hurt exposed banks, but I'm fairly certain it'd hurt Russia even more.

That's just political posturing, nobody's going to stop foreign debt repayments, just like nobody's going to stop selling gas to Europe.

I guess it could make sense to prevent those companies to hoard dollars. Since they're exporter, they probably don't have too much of a need for hard currencies?

Russian state-owned exporter companies tend to have disproportionate amounts of foreign currency thanks to their practically monopolies on the goods they sell, so telling them to sell some of their massive hard currency supplies is not really a big deal.

[mainiac]

Cease foreign debt service as a political gesture and a country immediately loses access to not just foreign financing but international transaction handling.  Normally the IMF would put together an emergency program to prevent that if a country can't service it's debt but they wouldn't help a country that did so voluntarily.  Very bad stuff would ensue.

[Sergarr]

Russian MPs are stupid, news at 11.

[Knit tie]

Russian MPs are stupid, news at 11.

Wait, you mean that they did cancel Russia's debt repayments?
No. No they didn't, I just checked.

[Descan]

Well, when all you need is a warm seat to say да when the time comes, it doesn't matter WHO you put there, eh?

Hell, you probably WANT to put the crazies in there, so you can save the actually intelligent people for the jobs that need a brain. >_>