16 December, 2014
Russia’s economy: The rouble’s rout | The Economist
Russia’s economy: The rouble’s rout | The Economist: There are other reasons to sell roubles and buy dollars. Across the economy there is over $120 billion in external debt maturing in the next year according to central bank data. Roughly a third of this is owed by banks, and the remaining two-thirds by other firms. Some of these outfits—notably Russia’s energy giants—have dollar revenues. A big chunk of the remainder, including the banks, do not. Since sanctions prevent many Russian companies from borrowing abroad to refinance these dollar debts, this creates sustained demand for dollars. With chunky repayments due in December, there could be another rouble rout before the end of the year (see chart).