Russian authorities on the verge of devaluing the rouble
News that the Russian authorities are on the verge of devaluing their currency the rouble is perhaps the most serious repercussion yet of the ongoing worldwide economic slowdown. This devaluation of the Russian currency marks a low point for both Russia and the worldwide economy and could be the first of a number of devaluations over the next few months.
Despite having masses of natural energy and natural resources, together with a new and vibrant business community, the Russian economy appears to be on the verge of collapse. This will have a knock-on effect to many countries around Russia and in the area as well as countries such as the US which still has substantial trade with the country even though diplomatic relations are strained at the moment. It will also prompt many investors to look for the next possible currency devaluation and place pressure on some of the weaker economies around the world.
The UK currency has also come under serious pressure of late as the government looks more intent on refloating the UK economy as opposed to defending the currency. More rumours of interest-rate reductions, possibly down to 0% as seen in the US, are not helping the situation and are putting more pressure on the currency.
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