Russia weakens ruble
The ruble fell to a record low against the euro as Russia devalued the currency for the 12th time in seven weeks. The Russian government said it expects the first budget deficit in a decade.
According to Bloomberg, the ruble today fell 2,4 percent to 41,65 per euro, the lowest since the European currency was introduced in 1999. It declined 0,9 percent to 29,24 against the dollar, the lowest since December 2003. Today’s decline is the 12th of more than 1 percent since November 11.
According to Finance Minister Alexey Kudrin, the Russian government plans to post a 2009 budget deficit, its first in a decade, Rossiyskaya Gazeta reports.
- We believe that 2009 will be the hardest year for the Russian economy in the last nine years and the toughest year for the world economy in the postwar period, Kudrin said.
Anti-crisis measures and state support to the federal subjects will make it necessary to take about 2,5 trillion rubles from the country’s reserve fond.
According to Arkady Dvorkovich, President Dmitry Medvedev’s economic adviser, budgets incomes will be 3-3,5 times lower that usual in 2009.
The price of Urals crude, the country’s main export blend of oil, has fallen 78 percent since its July 3 high to 32,34 USD a barrel, less than half the 70 USD Russia needs to balance its budget next year, Bloomberg reports.
