What about the Ruble? – Globe Asia – February 2015

In this artcle Professor Steve Hanke writes about the collapse of the ruble, from about 33 rubles to the $1 on 1 January 2014 to 60 rubles on 1 January 2015, and suggests that the Russian government should consder a Currency Board to stabilise their currency. The following quotes are taken from the article:

“For most of 2014, Russia faced an ever-increasing ratcheting up of economic sanctions. These set the stage for what was to come late in the year: the collapse of oil prices and the announcement on November 10th that the ruble would be allowed

to float. When combined, these three ingredients created a perfect storm.”

“If Russia wants to avoid further ruble turmoil, further impoverishment of its citizens, and potential political upheavals, it should tether the ruble tightly to the U.S. dollar. That’s what the big oil producers in the Persian Gulf region do – and for good reasons.”

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