The price of oil fall greatly in recent months and right now the price is lower than 70 dollars. For Russia, a country mainly depend on oil export, it is a bad news.
On Tuesday, one US dollar can buy 79 Rouble. To solve this problem, Russian ask banks to raise the interests up to 17%. The market reflects quickly, today one US dollar can only buy 62 Rouble. However, high interest rate can not solve the problem in long run. The weakness in manufacturing industry and monopolistic economy are the inside problem of Russian economics.
What’s more, US President Barack Obama is expected to sign legislation this week authorising new economic sanctions on Russia.
When currency devalue quickly, it will cause inflation and panic in the society. It is interesting to say what kind of methods Russian government will do to make the economic better.