Friday, December 5, 2008

Economist Nouriel Roubini: Ruble Should Be 10-20% Weaker as Oil Prices Drop,

In an interview with Bloomberg News, Nouriel Roubini said he sees oil prices falling a further 20%, which will hurt the Russian economy.

In his interview from Moscow, Nouriel Roubini said, "With most commodity currencies, like in Canada, Australia, when the price of commodities falls, the currency automatically weakens.” His suggestion is that the Ruble should be 10-20% weaker as oil prices drop.

In the interview he said Bank Rossii, Russia’s central bank, should stop selling foreign currency to support the ruble.
“At this point it’s better to let the currency depreciate gradually.”

No comments: