World Economy

Ruble Falls to New Lows

Ruble Falls to New LowsRuble Falls to New Lows

The Russian ruble hit a new historical low. The price for the US dollar now exceeds 40 rubles. The price of the euro exceeds 50 rubles, Itar-Tass reported. The Central Bank of Russia (CBR) plans to shift fully to inflation targeting policy starting from 2015, but offers to give up interference in a free-floating exchange rate regime and economic management through interest rates. Since May 7, 2014, the CBR has actually stopped to make interventions and did not resume them even amid a sharp ruble fall in the bi-currency basket on September 30. Not only has Russia’s dollar-denominated stock index plunged more than 20% since mid-July, but the ruble has fallen 17% against the dollar to record lows.