Russia'S Ruble Devaluation Market Has Been Snapped Up Price Rise Continuously

Russia is burning to save the rouble.

In Moscow at this time, the degree of zero up and down and the cold winter are not cold, but for Russians, this may not be the case.

In the past two days, the red signs on the typical gray streets in Moscow are dazzling, and the rouble is dropping by the exchange rate between the US dollar and the euro.

Russia's central bank raised interest rates sharply in December 16th, raising the benchmark interest rate by 650 basis points, from 10.5% to 17%, in order to curb the collapse of the ruble.

Moscow exchange, from the December 16th ruble fell below the "60" barrier when the Russian central bank to rescue the market, to the early morning of the benchmark interest rate to raise 650 basis points, "big move", ruble repeatedly submitted a temporary callback and then continued to fall, yesterday rouble against the U.S. dollar fell to 80 yuan, the foreign media to "collapse" to describe the two day ruble trend.

Last night, another news came from Beijing time. The Central Bank of Russia decided to sell 7 billion dollars.

In order to defend the ruble.

After the announcement, the rouble rebounded sharply, or over 11%.

Along with European and American sanctions and oil slump, rouble has been a constant topic for some time. Since the beginning of this year, the value of the rouble has dropped by about 50%. The consequent direct impact is rising prices, and the first thing to do is import goods.

Due to the depreciation of the local currency, the price of imported goods is expected to rise. When ruble fell to nearly 60 points last week, the famous "Mu" department store in the center of Red Square in Moscow has been surging. This high-end shopping mall is famous for selling world-famous brands. Gucci, Hermes, Tiffany and other stores have changed the sight of the past few customers, and the collection office has long queues.

A salesperson told reporters that due to the depreciation of the rouble, the shopping malls had raised the price of goods by 10%. In view of the trend of the continued ruble of the rouble, the shopping mall plans to continue to adjust prices next week.

It can be seen that many goods in the shop are out of stock.

In addition, TV, computers, mobile phones and other goods are listed on the Russell's panic buying list because of the upcoming price increase. According to Russian media, compared with the same period last year, the sales of digital products and household appliances in Moscow's major stores increased by 10% to 40%, and the price of electronic products has risen to 100% over the past week.

Us Apple Corp 16 said that because of the serious devaluation of the rouble, Russian importer vendors were unable to set local prices. Apple has stopped selling iPhone, iPad and computers on the Russian line, and suggested that the suspension is only temporary, only related to the Russian currency crisis.

An apple spokeswoman said: "in view of the extreme volatility of ruble's value, our online shop in Russia is now closed, and we are reviewing the price."

Many Russians urgently use roubles for dollars.

Alexei Kudrin, former Russian finance minister, wrote in his twitter account: "this is a mandatory but correct decision in the current situation."

However, he added that the Russian government now needs to restore investor confidence.

Alfa Bank of Russia said in a statement that the central bank may rely on this drug to raise the interest rate to deal with the panic of capital control, but more importantly, to win back the confidence of the people in the market, because at present, many people are speeding up the change of ruble deposits into US dollars.

Yulia Kirilllova, a 43 year old businesswoman in St Petersburg, stayed awake all night.

She was worried that the past few months had been a bad economy, and the 15 - day ruble was a real disaster.

"My business has gone to a blind alley.

Yesterday's collapse showed that the situation is still deteriorating. I don't know what will happen.

Russia's central bank raised interest rates sharply in December 16th, raising the benchmark interest rate by 650 basis points, from 10.5% to 17%, in order to curb the collapse of the ruble.

This is the largest increase in interest rates taken by Russia's central bank since Russia experienced sovereign debt crisis in 1998.

Market analysts believe that raising interest rates is like a double-edged sword. It is an urgent measure taken by the Central Bank of Russia to cope with the current situation, but it can not fundamentally solve the problem and may have a negative impact on the economy.

To curb the ruble collapse, policymakers should focus on restoring investor confidence in the market.

By the combined effect of internal and external factors such as the continuous decline of international oil prices, the economic sanctions imposed by the West against Russia and the low level of Russian international reserves, the depreciation rate of the rouble has exceeded 50% this year.

The Central Bank of Russia has increased interest rates for 5 times in the past few months, and has invested $80 billion in foreign exchange reserves to buy local currency, but with little success, it has failed to effectively curb capital flight and inflation.

Market analysts believe that raising interest rates will significantly raise corporate financing costs, exacerbate the risk of social unrest, and further combat the already weak economy.

The Russian government has already lowered its economic forecast in 2015, saying the economy will fall into recession.