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Why did the ruble Drop?

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by

Alexander Gübler

on 27 January 2015

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Transcript of Why did the ruble Drop?

Russia says ruble crisis over as reserves dive, inflation climbs

table of content
What happened
Why Did The Ruble Drop?
the falling oil prize

economic sanctions
Prices to rise for Russia's Lada on rouble weakness
reuters. com

January 13th

by Gleb Stolyarov
Inflation Spike
Russia needs to import a lot -> so they had to pay more

So people liked to buy dollars instead of Ruble

10% inflation rate

food got more expensive
The Falling Oil Prize
110$ -> 60$ per Barrel

russias economy is based on oil and gas (70%)

noone wants to cut prizes
economic sanctions
imposed by Europe and U. S.

punishing Putin for his actions against Ukraine

arms embargo

Russian firms couldn't borrow on Western markets
The Worst crisis since 1998
Why did the ruble drop?
Inflation Spike
Prices has to rise because of Rouble weekness
What happened?
About the Article
reuters.com

by Elena Fabrichnaya and Alexander Winning

December 25th 2014
the prize for a car manufactured by Lada will increase by 9%

prize for imported cars rose by more than 40%

in addition the currency has fallen by 11%

81% of their parts they buy localy --> hoped to not rise the prize
They hoped the economy would recover quicklier

No more price increase

Lada Granta - 300.000 Roubles (4.595$)
Sales dropped by 16% in 2014

11.6 % for the car market
Full transcript