Rouble collapse will be felt globally – Al Jazeera Blogs.
The Central Bank, trying as it was to catch a falling knife, had very little choice but to ramp up interest rates on Tuesday.
It’s attempt to stop the Rouble’s rapid descent, however, failed miserably. The currency has lost more than 50 percent of its value, which will lead to a crippling rise in the cost of imports.
Western sanctions have made their point: President Vladimir Putin will not get away with his annexation of Crimea and his meddling in Ukraine.
It is a heavy penalty for the Russian people. Many have taken out mortgages in dollars, meaning their repayments doubled in the last 10 months.
Gas giant Gazprom slipped out a statement on Tuesday saying it would fire up to 25 percent of its workforce – Gazprom employs in excess of 500,000 people.
But the West could also pay a heavy price.
