How does it work and who dictates how high/low it will go?.
Why is gas so cheap now?.
Meanwhile in the USA:
In Russia:
Russia’s international reserves, which have shrunk by a fifth since last year’s peak, are in the spotlight after the central bank shifted its currency intervention policy as the ruble plunged to a record.
The value of the stockpile has declined for 11 straight weeks, losing $10.5 billion in the seven days through Oct. 31 to $428.6 billion, the largest drop since May, the central bank today. The ruble weakened to a record low, depreciating 2.3 percent against the dollar as of 4:17 p.m. in Moscow.
Under announced yesterday, the Bank of Russia can conduct large-scale discretionary interventions to defend against what it deems to be threats to the nation’s financial stability. Such operations will be restricted only by the size of the reserves, central bank First Deputy Governor Ksenia Yudaeva said yesterday. The holdings are now in a “comfortable zone” and allow the regulator to act without any “substantial limits,” she said.
“Clearly they became uncomfortable” with burning through $2 billion to $2.5 billion a day to defend the ruble, Tom Levinson, the chief foreign-exchange and interest-rates strategist at Sberbank CIB, said by phone. “I don’t think they will want to but if they had to they would consider going down to $400 billion.”
New Rules: https://www.bloomberg.com/news/2014...-fall-7-9-billion-biggest-drop-since-may.html
Why is gas so cheap now?.
Meanwhile in the USA:
In Russia:
Russia’s international reserves, which have shrunk by a fifth since last year’s peak, are in the spotlight after the central bank shifted its currency intervention policy as the ruble plunged to a record.
The value of the stockpile has declined for 11 straight weeks, losing $10.5 billion in the seven days through Oct. 31 to $428.6 billion, the largest drop since May, the central bank today. The ruble weakened to a record low, depreciating 2.3 percent against the dollar as of 4:17 p.m. in Moscow.
Under announced yesterday, the Bank of Russia can conduct large-scale discretionary interventions to defend against what it deems to be threats to the nation’s financial stability. Such operations will be restricted only by the size of the reserves, central bank First Deputy Governor Ksenia Yudaeva said yesterday. The holdings are now in a “comfortable zone” and allow the regulator to act without any “substantial limits,” she said.
“Clearly they became uncomfortable” with burning through $2 billion to $2.5 billion a day to defend the ruble, Tom Levinson, the chief foreign-exchange and interest-rates strategist at Sberbank CIB, said by phone. “I don’t think they will want to but if they had to they would consider going down to $400 billion.”
New Rules: https://www.bloomberg.com/news/2014...-fall-7-9-billion-biggest-drop-since-may.html
