Replies to post #9178 on The Rising Influence of Rising Affluence

[jbog]

Doc,

Russia is probably buying Gold to hold as part of its currency reserves. Gold even if it drops will not drop anywhere close to the speed that its local currency has dropped.

The Ruble has dropped somewhere around 30% this year even after they intervened to support it more the once.

[DewDiligence]

Russia—looking desperate—raises benchmark interest rate to 17%:

http://www.wsj.com/articles/russias-central-bank-raises-key-rate-to-17-1418682581

Russia’s central bank, in a bid to stem a sharp decline of the ruble, raised its key interest rate Tuesday to 17% from 10.5%.

…The ruble’s drop Monday—the largest in a single day since 1999—brings the slump to nearly half since the start of the year and more than one-fifth this month. As the ruble fell, Russia’s central bank said the economy could shrink by as much as 4.7% next year if oil averages $60 a barrel, not far below the current price of Brent crude, the global benchmark.