Market Overview

Economist Says Russian Central Bank's Steps To Slow Deterioration Of Ruble Do Not Support Fundamental Solution, Possibly 'Counterproductive'

Share:

Speaking to Benzinga, Southern Polytechnic State University Economist Dr. Mikhail Melnik said that he understands the desperate efforts of the Russian Central Bank to slow down the deterioration of the ruble.

But Melnik feels that these steps do not offer a fundamental solution and may even be counterproductive. He explained that the exchange rate is very important.

“Russia imports a lot of finished products from medications to computers to cars from overseas, and a drop in the value of the ruble is not only inflationary but damaging to the most vulnerable segments of the population,” he said.

The SPDR S&P Russia ETF (NYSE: RBL) was down 2.1 percent at $13.38 Tuesday afternoon.

The Market Vector Russia ETF Trust (NYSE: RSX) was nearly unchanged at $13.96.

Posted-In: Mikhail Melnik Ruble Russia Russian Central BankEconomics Exclusives

 

Related Articles (RSX + RBL)

View Comments and Join the Discussion!
Lightning Fast
Market News Service
$199 Free 14 Day Trial
Book A Demo
Learn How You Can Succeed In The Market With Benzinga Pro

Fastest Market News

Real-Time News Alerts

Customizable News Filters

Book A Demo

TPI Expects To Receive GMP From China's FDA By End Of 2014

UPDATE: Goldman Sachs Initiates Coverage On ServiceNow