Russia's Rouble Rollercoaster Ride

><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016

RUSSIA'S ROUBLE ROLLERCOASTER RIDEHUN SEO | KORNIETSKAYA ANASTASIA

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Some countries prosper when oil prices decline and suffer economically when they rise, while the opposite is true for others.

Countries whose economies benefit when the price of oil is low tend to be net importers of oil, meaning they import more than they export.

Low prices are preferred when doing more buying than selling.

BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016

DECLINE OF OIL PRICES

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Some countries prosper when oil prices decline and suffer economically when they rise, while the opposite is true for others.

Countries whose economies benefit when the price of oil is low tend to be net importers of oil, meaning they import more than they export.

Low prices are preferred when doing more buying than selling.


DECLINE OF OIL PRICES

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><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016 4

TOP RUSSIAN EXPORT ITEMS

Mineral fuels & oilsIron and steelPrecious metalsFertilisersMachineryWoodAluminiumInorganic chemicalsCopperElectronicsOther

><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016

WHY ARE OIL PRICES FALLING?

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STRONG U.S. DOLLAR | OPEC | OVERSUPPLY | DECLINING DEMAND | THE IRAN NUCLEAR DEAL



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STRONG U.S. DOLLAR | OPEC | OVERSUPPLY | DECLINING DEMAND | THE IRAN NUCLEAR DEAL



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EXCHANGE RATE


1元

2013 5.440761 RUB

2016 10.425877 RUB

PERSONAL EXPERIENCE

45000 RUB

2013

2016


1元

2013 5.440761 RUB

2016 10.425877 RUB

PERSONAL EXPERIENCE

45000 RUB

2013 8270,90181 元

2016


1元

2013 5.440761 RUB

2016 10.425877 RUB

PERSONAL EXPERIENCE

45000 RUB

2013 8270,90181 元

2016 4316,18366 元


1元

2013 5.440761 RUB

2016 10.425877 RUB

PERSONAL EXPERIENCE

35000元

2013

2016


1元

2013 5.440761 RUB

2016 10.425877 RUB

PERSONAL EXPERIENCE

35000元

2013 190426,635 RUB

2016


1元

2013 5.440761 RUB

2016 10.425877 RUB

PERSONAL EXPERIENCE

35000元

2013 190426,635 RUB

2016 364905,695 RUB


The weaker ruble is stoking inflation by driving up prices for imported goods and

creating worsening debts for companies that borrowed from Western banks.

Now Russians are reportedly bum-rushing malls to swap cash for washing machines, TVs, or laptops—anything that seems as if it might hold value better than paper

money, whose worth is evaporating in real time.


THE RUSSIAN GOVERNMENT ATTEMPTED TO TAMP DOWN BY RAISING INTEREST RATES AS HIGH AS 17%.THE IDEA IS THAT IF YOU OFFER PEOPLE HIGHER INTEREST RATES, THEY'RE MORE LIKELY TO KEEP THEIR MONEY IN

RUBLES.


DO YOU HAVE ANY QUESTIONS?

Q&A


http://www.bloomberg.com/news/articles/2014-12-16/no-caviar-is-not-getting-cheaper-everything-you-need-to-know-

about-the-russian-ruble-collapse

http://www.investopedia.com/ask/answers/030315/how-does-price-oil-affect-russias-economy.asp

http://www.investopedia.com/articles/investing/102215/4-reasons-why-price-crude-oil-dropped.asp

http://www.bloomberg.com/news/articles/2014-12-16/no-caviar-is-not-getting-cheaper-everything-you-need-

to-know-about-the-russian-ruble-collapse

http://www.nytimes.com/interactive/2016/business/energy-environment/oil-price-supply-demand-

imblance.html?action=click&contentCollection=Energy%20%26%20Environment

%20&region=Footer&module=WhatsNext&version=WhatsNext&contentID=WhatsNext&moduleDetail=undefined&

pgtype=Multimedia

http://www.bloomberg.com/news/articles/2014-12-16/no-caviar-is-not-getting-cheaper-everything-you-need-to-know-about-the-russian-ruble-collapse

Russia's Rouble Rollercoaster Ride

Economy & Finance