After Russia won against the speculators heres what may come in the next few weeks: capital controls (on investments less than 1 year) coupled with sharply reduced interest rates; or long term high interest rates to ward off speculation mixed with cheap finance mechanism for Russian industry. The core objective in each policy mix is to finance the growth of Russian private industry. Of particular note also is the Russia-China swap agreement which played a covert but crucial role in defeating this round of anti-ruble speculation, as well as discouraging future ones, probably decisively. The Russia-China bloc is firmly staking out its positions in global finance.
Posted on: Tue, 23 Dec 2014 14:30:18 +0000
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