Ruble strenghtens after Putin try to reduce foreign debt
Vladimir Putin seek to cut the percentage of foreign currency loans more then 50 %. He imposed new tax breaks with reductions for local loans compared to foreign loans.
Russian Debt levels
Russian companies have $294 billion of international and 12.8 trillion rubles ($410.8 billion) of local loans, according to Bank of Russia.
Lower inflation and borrowing costs
The interest rate has been cut 14 times in Russia the last year, to 7.75 % in July. At the same time, inflation gone down drastically from over 10 % to 5.8 % in June. Hopefully, global trust for russian ruble are going in the right direction and we’ll see the Russian currency rise against the major trading partners during 2010.
What Do you think of the Russian Ruble? Would you consider to invest in Russia now?
