Russia's attempts to plug its budget deficit by selling foreign currency reserves could lead to a vicious circle that pushes the rouble higher and further reduces the Kremlin's crucial export revenues, analysts say.
in foreign exchange markets for the first time in almost a year, selling 54.5 billion roubles worth of yuan from the National Welfare Fund. The sales started on Jan. 13 and will run for three weeks.
The Kremlin relies on export taxes from hydrocarbon sales to fund its domestic spending, which has increased sharply to cover accelerating costs for the Ukraine war, now in its 11th month. That process could trigger a cycle of weaker export revenues, requiring more foreign currency sales and leading to an even stronger rouble, exacerbating the budget hole.
The revenue gap could be 2-3 times higher than the 54.5-billion rouble shortfall in January, CentroCreditBank economist Evgeny Suvorov estimates.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Russia’s tycoons fear tightening Kremlin squeeze as Putin’s war drags onAs Vladimir Putin pushes his war in Ukraine into its second year, the deepening militarization of Russia’s economy is fueling fears among the country’s business elite that the squeeze o…
Read more »
Russian state TV goes after Miss USAA Kremlin propagandist mocked the costume worn by R'Bonney Gabriel at the annual beauty pageant.
Read more »
Bitcoin (BTC) Price Analysis for January 14Can BTC remain above $20,000 for a long time? NickSzabo4 alistairmilne Maybemore_DC WhalePanda
Read more »
Analysis: Documents probe dents Biden's claims to competenceBiden seemingly ignored or forgot about a cardinal rule in politics: Check your closet for skeletons before you complain about someone else's.
Read more »
Analysis: Documents probe dents Biden's claims to competenceBiden seemingly ignored or forgot about a cardinal rule in politics: Check your closet for skeletons before you complain about someone else's.
Read more »
Game Day: A fresh start for the ChargersA back-of-an-envelope analysis of overachieving and underachieving teams and their NFL playoff success.
Read more »