Summary: Since people selling their rubles for dollars is what’s pushing the currency down, the central bank has raised interest rates to make holding on to rubles more attractive. That’s meant to keep the currency’s value up, even at the expense of short-term economic growth. The side affect of high interest rates (high returns on bank deposits) is that companies can simply leave their rubles in the bank to earn a high return on their deposits.
Posted on: Wed, 17 Dec 2014 19:51:48 +0000
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