- Title: RUSSIA-ROUBLE Russian rouble sinks below 71 to dollar approaching all-time lows
- Date: 24th August 2015
- Summary: MOSCOW, RUSSIA (AUGUST 24, 2015) (REUTERS) CARS PASSING PAST KREMLIN PEOPLE WALKING UNDER CURRENCY EXCHANGE BOARD CURRENCY EXCHANGE BOARD, KREMLIN TOWER IN BACKGROUND PEOPLE WALKING ON STREET CURRENCY EXCHANGE BOARD CARS DRIVING CURRENCY EXCHANGE BOARD PEOPLE WALKING ON STREET CURRENCY EXCHANGE BOARD (SOUNDBITE) (Russian) MOSCOW RESIDENT, ELENA, SAYING: "We don't like it of course. Because people are now living worse than before. And we don't know what happens tomorrow." (SOUNDBITE) (Russian) MOSCOW RESIDENT, SVETLANA, SAYING: "It is hard for the people. It can lead to a lot of things. It can even lead to unrest. I don't want any big clashes or something like this, God forbid. But people are not happy." (SOUNDBITE) (Russian) MOSCOW RESIDENT, NIKOLAI, SAYING: "In my case it impacted my vacation. It will be harder for me now to go on vacation than it was six months ago." PEOPLE WALKING ON STREET (SOUNDBITE) (Russian) MOSCOW RESIDENT, ARTEM, SAYING: "I think it will have a serious impact on prices, and it may lead to certain unrest among people. But let's hope that our authorities, the people in charge of the economy, will somehow improve the situation." (SOUNDBITE) (Russian) MOSCOW RESIDENT, YEVGENY, SAYING: "When you look at what measures our government is taking, it's all restrictions. To ban, to refuse, to restrict. But instead, it should be to allow, to give opportunities, to give opportunities to the people to take initiative. But we have restrictions from all sides. It feels like our authorities are fighting for their own survival, to remain in power, rather than for the interests of the economy." PEOPLE WALKING NEAR KREMLIN
- Embargoed: 8th September 2015 13:00
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- Topics: General
- Reuters ID: LVA4VB2R0SUJBVV7HC82UB9CSNVP
- Aspect Ratio: 16:9
- Story Text: Russia's rouble sank to below 71 to the dollar on Monday (August 24), approaching 2015 lows as it reacted to further declines in oil prices and plunging Chinese markets.
Besides lower prices for oil, which accounts for the lion's share of Russia's budget revenues, the currency is also suffering from Western sanctions imposed on Moscow over the crisis in Ukraine, making it hard for Russian companies to borrow abroad.
The rouble is approaching its 2015 low of 71.85 reached on Jan. 30, though still some way from the all-time low of 80 it hit last December. Slightly more than a year ago, it traded at 33.
Russian population, for a long time oblivious to the sliding currency, seemed to start noticing the effects of the rouble crash.
"We don't like it of course. Because people are now living worse than before. And we don't know what happens tomorrow," said Elena who was walking down the street near the Kremlin with her little daughter.
"It is hard for the people. It can lead to a lot of things. It can even lead to unrest. I don't want any big clashes or something like this, God forbid. But people are not happy," said Svetlana, a pensioner.
The crisis has also hit the tourism sector with around 40 percent fewer Russians travelling abroad this year as they are being forced to spend more on basic goods.
"In my case it impacted my vacation. It will be harder for me now to go on vacation than it was six months ago," said Moscow resident Nikolai adding that when he went to buy the foreign currency the rate was "astronomically high".
Economy Minister Alexei Ulyukayev, who was first deputy central bank head during the 2008-2009 crisis, said on Monday oil could briefly fall to below $40 per barrel, effectively preparing the market for new falls in the rouble.
The rouble fall has massively benefited exporters of Russian oil, gas, metals and other commodities while hurting importers and ordinary Russians.
Russian inflation is expected to exceed 20 percent this year, a level unseen during the presidency of Vladimir Putin, who came to power in 2000 and has prided himself for ensuring stability and prosperity after chaotic years that followed the collapse of the Soviet Union.
"I think it will have a serious impact on prices, and it may lead to certain unrest among people. But let's hope that our authorities, the people in charge of the economy, will somehow improve the situation," said Moscow resident Artem.
"When you look at what measures our government is taking, it's all restrictions. To ban, to refuse, to restrict. But instead, it should be to allow, to give opportunities, to give opportunities to the people to take initiative. But we have restrictions from all sides. It feels like our authorities are fighting for their own survival, to remain in power, rather than for the interests of the economy," said Yevgeny from Moscow.
Putin's approval ratings also remain very high, supported by a patriotic mood encouraged by Russia's annexation last year of Crimea from Ukraine. - Copyright Holder: REUTERS
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