Monday, March 3, 2014
The total loss in market capitalization of Russian companies on stock and comodities markets plunged by RUB 2 trillion.Some Russian tweets point out that “it is RUB 500 billion more than the cost of the Olympics.” This is a screen from Mitya Aleshkovsky’s twitter.
The Central Bank of Russia raised the primary interest rate by 1.5 percentage points to 7% after the ruble fell sharply to the record low level. The Central Bank stated that its decision is a response to the sudden volatility on financial markets. The RTS index fell by 10.5%.
Ruble fell almost by 10% to USD this year and also dropped to 50 rubles to EUR on Monday. The drop below 36.4 to USD is also a record low. Commodity prices hiked to the highest level in almost 6 months as the confrontation in Ukraine fueled fears that energy supply and farming goods may be disrupted.
Translated by Anatoliy Shara, edited by Mariana Budjeryn