From MT:
"Dollar Shortages Spread Amid Russian Ruble Collapse"
Rising demand for foreign currency meant U.S. dollars and euros were unavailable at some Russian banks and exchange points Friday as the ruble went into free fall during morning trading. The Russian currency nosedived 3.8 percent against the dollar after markets opened, hitting a historical nadir of 48.64 against the greenback and shooting past the 60 rubles to the euro mark for the first time. Analysts warned that Russia was standing on the verge of a full blown currency crisis amid signs of panic in the population, where memories of a plummeting ruble and runaway inflation during the 1998 default are never far away. The dramatic rout meant the ruble had lost over 10 percent against the dollar in the 48 hours after the Central Bank announced Wednesday that it was capping market interventions to defend the ruble at $350 million a day. While the ruble later bounced back, gaining 6 percent by mid afternoon on expectations that the Central Bank would be forced to act, the currency was still down 30 kopeks in the early evening, trading at just under 47 versus the dollar. Russian retail banks reported a surge in demand for foreign currency on Thursday and Friday. Attempting to exchange rubles for dollars at a VTB 24 in downtown Moscow at about 2 p.m. on Friday, a Moscow Times reporter was told that the branch had ran out of dollars, but was expecting additional shipments the following day. At a nearby Sberbank, dollars were still being sold but the branch was flooded with so many customers looking to exchange currency that the ticket-based waiting system had stopped working. Shortages of currency at other Russian retail banks including Moscow Credit Bank, Otkritie Bank, Trust Bank, Investtorgbank and Baltika Bank were reported by TASS and another Russian news agency, RBC. Smaller retail banks have reportedly been encouraging customers to make advance orders for foreign currency in order to ease the supply pressures. Rumors of an emergency meeting of the Russian Central Bank eased selling pressure on the currency Friday afternoon, allowing it to strengthen as traders looked for a market intervention by the regulator to punish speculators betting on continued falls. The Central Bank, however, apparently decided not to use the firepower of its foreign currency reserves and instead issued a statement promising that it was prepared to use all the means at its disposal to head off the threat to financial stability.
^ I remember the last time I was in Russia and people wanted US Dollars (you could even get Dollars or Rubles from some ATMs.) because they didn't want to loose their savings as they did in 1991 and 1998. That was before these current sanctions. I feel sorry for my Russian friends who are caught in the middle of international issues beyond their control. ^
http://www.themoscowtimes.com/business/article/dollar-shortages-spread-amid-russian-ruble-collapse/510803.html
"Dollar Shortages Spread Amid Russian Ruble Collapse"
Rising demand for foreign currency meant U.S. dollars and euros were unavailable at some Russian banks and exchange points Friday as the ruble went into free fall during morning trading. The Russian currency nosedived 3.8 percent against the dollar after markets opened, hitting a historical nadir of 48.64 against the greenback and shooting past the 60 rubles to the euro mark for the first time. Analysts warned that Russia was standing on the verge of a full blown currency crisis amid signs of panic in the population, where memories of a plummeting ruble and runaway inflation during the 1998 default are never far away. The dramatic rout meant the ruble had lost over 10 percent against the dollar in the 48 hours after the Central Bank announced Wednesday that it was capping market interventions to defend the ruble at $350 million a day. While the ruble later bounced back, gaining 6 percent by mid afternoon on expectations that the Central Bank would be forced to act, the currency was still down 30 kopeks in the early evening, trading at just under 47 versus the dollar. Russian retail banks reported a surge in demand for foreign currency on Thursday and Friday. Attempting to exchange rubles for dollars at a VTB 24 in downtown Moscow at about 2 p.m. on Friday, a Moscow Times reporter was told that the branch had ran out of dollars, but was expecting additional shipments the following day. At a nearby Sberbank, dollars were still being sold but the branch was flooded with so many customers looking to exchange currency that the ticket-based waiting system had stopped working. Shortages of currency at other Russian retail banks including Moscow Credit Bank, Otkritie Bank, Trust Bank, Investtorgbank and Baltika Bank were reported by TASS and another Russian news agency, RBC. Smaller retail banks have reportedly been encouraging customers to make advance orders for foreign currency in order to ease the supply pressures. Rumors of an emergency meeting of the Russian Central Bank eased selling pressure on the currency Friday afternoon, allowing it to strengthen as traders looked for a market intervention by the regulator to punish speculators betting on continued falls. The Central Bank, however, apparently decided not to use the firepower of its foreign currency reserves and instead issued a statement promising that it was prepared to use all the means at its disposal to head off the threat to financial stability.
^ I remember the last time I was in Russia and people wanted US Dollars (you could even get Dollars or Rubles from some ATMs.) because they didn't want to loose their savings as they did in 1991 and 1998. That was before these current sanctions. I feel sorry for my Russian friends who are caught in the middle of international issues beyond their control. ^
http://www.themoscowtimes.com/business/article/dollar-shortages-spread-amid-russian-ruble-collapse/510803.html
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