Rouble Plunges Again Despite Efforts to Contain the Rout. What Is Required to Contain EM Sell-Off?

Markets Are Pushing CBR Towards a Hike. CBR Should Stay on Hold

Reform Makes Ukraine Unlikely Bright Spot in EM

Emerging Market Economist, Emerginomics

Tatiana Orlova

Emerging Market Economist

Emerginomics

Thematic (Sector/Industry)

Russia & united states / Thematic (Sector/Industry)

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<p>In August, markets are notoriously prone to sharp moves owing to thin liquidity. On Wednesday 8 August, the rouble plunged as the markets digested a draft US bill aimed at the widening of the sanctions now in place against Russia. In today's trading session, its weakening continued on the US announcement of additional sanction plans.</p>
<p><strong>If the US Congress and Senate approve the new bill undiluted, this should prompt further Russian sovereign debt sell-off and RUB weakening. However, given</strong>…</p>
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In August, markets are notoriously prone to sharp moves owing to thin liquidity. On Wednesday 8 August, the rouble plunged as the markets digested a draft US bill aimed at the widening of the sanctions now in place against Russia. In today's trading session, its weakening continued on the US announcement of additional sanction plans.
If the US Congress and Senate approve the new bill undiluted, this should prompt further Russian sovereign debt sell-off and RUB weakening. However, given…


Rouble Dives as US Congress Publishes New Sanctions Bill