20/12/2014: Russia’s Black Monday: The Debate is On

trueeconomics.blogspot.com / by Dr. Constantin Gurdgiev / Saturday, December 20, 2014

It is a hazardous task to attempt to explain fast spikes in Forex markets pressures during the ongoing currency crises. And hence few attempt. One very interesting – and I suspect rather correct – try is by Sergei Guriev http://www.project-syndicate.org/commentary/ruble-collapse-corporate-debt-by-sergei-guriev-2014-12.

Guriev directly links the Russian Ruble’s Black Monday (and I would add Black Tuesday too) on Rosneft debt redemption that takes place this weekend.

He is right on all points, including, probably, the suspicion that CBR delayed rate hike to allow Rosneft debt deal to go through, with a caveat.