The ruble’s rebound and current stability is certainly welcome news to Russia and the Russian government. However, as Putin indicated in a recent speech, Russia faces a deep recession over the next year or two. Without a rebound in oil prices, it is likely to experience a large fiscal deficit and further economic challenges. This will mean more pressure on the ruble. The currency crisis is contained for the time being, but the risk of a deeper economic crisis remains.
This article was written by David Blitzer, chairman of the index committee, S&P Dow Jones Indices.
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