Rouble hits two-year low

Sep 27th, 2011 | By | Category: Rouble News

The Russian rouble has fallen to a low not seen in more than two-years, visit this driven down by continued economic instability and the resignation of finance minister Alexei Kudrin.

The official exchange rate fell to 32.46 roubles to the dollar, website like this while the euro exchange also dipped slightly to reach 43.45 roubles.

Kudrin's resignation this week (26 September) has been broadly received by Western economies as negative for the Russian economy. He was regarded by foreign investors as the man most likely to conduct widespread economic reforms and in his time had helped the government to pay off the majority of its substantial foreign debt.

His departure followed a dispute with President Dmitry Medvedev. Disagreements on economic policies and an increase in defense spending were said to be the main issues between the pair, order making it almost certain that Kudrin will not take up a place in the incoming government that Medvedev is hoping to head when prime minister Vladimir Putin reclaims the presidency in the March elections.

Neil Shearing, chief emerging market economist at Capital Economics, wrote in a note to clients that it is is “difficult to see how Mr Kudrin's resignation can be anything but market-negative”. He added: “For all Mr. Medvedev’s warm words on the need to progress market reforms, Mr. Kudrin has arguably been more influential in rebuilding Russia’s balance sheet from the ashes of the 1998 rouble crisis.”

Be Sociable, Share!

Leave Comment