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Ruble Rallying On Russian Verbal "Unlimited" Intervention

Tyler Durden's picture





 

Following yesterday's continued slide to record lows against the Central Bank's currency basket, the Russian Ruble is rallying this morning as Russian Central Bank chief Elvira Nebiullina jawboned the threat of renewed intervention to "smooth out" markets:

  • *NABIULLINA SAYS FX MKT INTERVENTIONS NEEDED FOR FIN. STABILITY
  • *NABIULLINA SAYS BANK ROSSII 'SMOOTHING OUT' SHARP RUBLE SWINGS

One can only hope that - despite the bank runs, a plan not to raise rates, and a canceled bond auction - Russia has more success that Turkey is "fixing" the problem of QEasy money flows. The Ruble "basket" has reverted back to pre-Turkey levels.

 

The USD remains bid

 

But against the Central Bank's currency basket, the losses from Turkey have been reverted...

 

Canceled Bond auction...

The Finance Ministry shelved this week’s sale after “an analysis of current market conditions,” it said in a statement on its website.

 

The ministry’s “actions are understandable -- we don’t need to borrow at any cost,”

And today's jawboning:

Speaking to reporters outside Moscow, Russian central bank Chairman Elvira Nabiullina reiterates FX interventions won’t be fully abandoned.

Policy stance was previously declared and central bank is adhering to it: Nabiullina

Nabiullina: “We are planning to stick to the timetable that was announced to increase exchange rate flexibility in 2014

Nabiullina: “We are smoothing out sharp fluctuations because we think that sharp fluctuations are harmful for everyone

 


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Thu, 01/30/2014 - 10:57 | Link to Comment Stoploss
Stoploss's picture

Better check ur stacks...

Thu, 01/30/2014 - 11:02 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

Unlimited verbal intervention? 

That's Janet's dress!

Who wears it better?

 

 

*The KSA's/USA's military/currency warriors/traders better be careful before they start a shooting war.  We seem to REALLY want that pipeline through Syria.

Thu, 01/30/2014 - 11:17 | Link to Comment BandGap
BandGap's picture

And oral sex means you just talk about it.

Thu, 01/30/2014 - 11:22 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

Don't miss Hollywood's latest propaganda film, Jack Ryan: Shadow Recruit

...Ryan is working on Wall Street at both a cover job as a
compliance officer at a stock brokerage, and as a covert CIA analyst,
looking for suspect financial transactions that would indicate terrorist
activity. When the Russian Federation loses a key vote before the
United Nations
, Ryan notices that the markets do not respond in the
expected way. He discovers that trillions of dollars held by Russian
organizations have "fallen off the radar". There is so much money held
out of view that the United States economy may actually be vulnerable to
a sudden move. All of these funds are controlled by Viktor Cheverin, a
veteran of the Soviet invasion of Afghanistan. Cheverin, along with a
group of key Russian politicians, have been left embittered by the United States' covert intervention in the invasion and are seeking revenge.

 
 

During their debrief, Ryan explains how Cheverin's
shadow investments can make the United States vulnerable: A staged terrorist attack will spook and weaken global markets including US debt obligations. Then Cheverin will dump all of his inventory onto the market at the same time, causing the American dollar to collapse. It would hurt China too because of their dollar holdings, and so the goal is to trigger a new Great Depression.

 

http://www.imdb.com/title/tt1205537/synopsis?ref_=tt_stry_pl

 

The Take-Home Propaganda Lessons: 

1)  Russians are terrorists motivated only by jealosy of USA's victory in Afghanistan.

2)  Only by tracking all social media, phone calls, emails, and web
browsing is our hero able to save America from the terroroist attack. 

3)  A dollar collapse would have nothing to do with the actions of our debt-addicted congress, it would be the fault of terrorist Russians.

Thu, 01/30/2014 - 11:24 | Link to Comment eddiebe
eddiebe's picture

Of course!

Thu, 01/30/2014 - 11:39 | Link to Comment Pure Evil
Pure Evil's picture

That sounds about right.

Hopefully Obama will take executive action and confiscate all of America's guns thereby making us safe from any Russian invasion.

Thu, 01/30/2014 - 13:20 | Link to Comment Colonel Klink
Colonel Klink's picture

Propaganda via Whorrywood to brainwash the masses.  Who knew!

Thu, 01/30/2014 - 15:38 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

4)  Don't play checkers when your opponent is playing chess.

Thu, 01/30/2014 - 13:12 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

And Aural means you just listen in?

And Auroral means you're into watching, but Au-Oral means you're a gold-shill?  ;-)

Thu, 01/30/2014 - 11:05 | Link to Comment Millivanilli
Millivanilli's picture

Looks like vlad is getting payback for syria, up the ass. Perhaps he could raise gas prices to Europe to stabilize the ruble.  Hopefully the olympics goes off with out mass casualities.

Thu, 01/30/2014 - 11:32 | Link to Comment kralizec
kralizec's picture

Olympipcs might be cancelled when Vlad intervenes in Ukraine.

Thu, 01/30/2014 - 14:32 | Link to Comment SDShack
SDShack's picture

Folks better be careful dissing Vlad. I sense a baptism moment coming up... "And then I'll meet with Don Barzini and Tattaglia - all of the heads of the Five Families."

Thu, 01/30/2014 - 11:13 | Link to Comment The Vineyard
The Vineyard's picture

Is there any hope?  Probably not.  At least women still have nipples.

Thu, 01/30/2014 - 10:57 | Link to Comment Sudden Debt
Sudden Debt's picture

why do they keep compairing to US dollars?

why not Liberian dollars?

Or pebbles?

Or seashells?

Thu, 01/30/2014 - 11:02 | Link to Comment Levadiakos
Levadiakos's picture

Because we live here.

Thu, 01/30/2014 - 14:54 | Link to Comment Urban Redneck
Urban Redneck's picture

Who's we?

That perspective reeks of US nationalism/centrism and crusty congresscritter crotches...

Thu, 01/30/2014 - 11:02 | Link to Comment agent default
agent default's picture

Because the Fed has much higher comedy value than anybody else?

Thu, 01/30/2014 - 11:01 | Link to Comment Dr. Engali
Dr. Engali's picture

We are smoothing out sharp fluctuations because we think that sharp fluctuations are harmful for everyone

 

 

 

Maybe you should go with bitcoin.... oh wait.

Thu, 01/30/2014 - 13:19 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Bitcoin is feared.  <-- Fixed it for you.

It's feared by TPTB/CBs, stubborn ignoramuses, and fake libertarians.

Thu, 01/30/2014 - 11:00 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Wait what?  Explain to me how canceling a bond auction and promising to print more Rubles, makes the ruble stronger against the dollar?   Wouldn't you want to sell the ruble in this case?

I'm confused.

Thu, 01/30/2014 - 11:03 | Link to Comment Oldballplayer
Oldballplayer's picture

If you do not need to have the auction, then they can put it off.  I am guessing here.

Unlike us.  Can you imagine the horror if we cancelled an auction here in the US?

Thu, 01/30/2014 - 14:23 | Link to Comment mccvilb
mccvilb's picture

So Russia's Putin proposes banning the circulation of dollars in Russia but will swap out rubles for dollars. New Yorkers must be in a panic. What will become of Little Odessa?

Thu, 01/30/2014 - 11:04 | Link to Comment Ban KKiller
Ban KKiller's picture

"Fluctuations".....bend over and take it...again and again. Big banks wear no condoms. 

Squirt your country full of fiat paper juice. 

Thu, 01/30/2014 - 11:04 | Link to Comment buzzsaw99
buzzsaw99's picture

35? Ho Lee Fuk. Probably due to their "strong ruble policy" lulz.

Thu, 01/30/2014 - 11:07 | Link to Comment Millivanilli
Millivanilli's picture

Funny thing, though.  The US and Europe have printed around 8 trillion and continue with out an end in sight. Yeah, I know the taper is on...   

Thu, 01/30/2014 - 11:11 | Link to Comment Quinvarius
Quinvarius's picture

I feel bad for the poor guys whose job it is to paint gold.  They have to be sitting there knowing their banks and organizations are going to lose everything as they look at their books and gold debt. 

Thu, 01/30/2014 - 11:14 | Link to Comment youngman
youngman's picture

These Olympics are going to be interesting...who will go faster..the skiers or the security patrols running to a scene...

Thu, 01/30/2014 - 11:36 | Link to Comment flyingpigg
flyingpigg's picture

Interesting indeed..and what will the gold content be of the medals for first place?

Thu, 01/30/2014 - 11:21 | Link to Comment eddiebe
eddiebe's picture

Currency wars are heating up. I wonder how long it will take all the sheeple out there to conclude that gold and silver are their only refuge if they want to store value.

Thu, 01/30/2014 - 12:17 | Link to Comment reload
reload's picture

the vast majority will realise too late.......as ever

Thu, 01/30/2014 - 14:10 | Link to Comment Zwelgje
Zwelgje's picture

the majority doesn't realise anything.

Thu, 01/30/2014 - 11:32 | Link to Comment TacticalTrading
TacticalTrading's picture

Major event or excuse for a change in direction after a huge move?

Perspective...

Fom 32.86 on Dec 31, 2013 to 35.28 high on Jan 28, 2014, it was just a little bit extended  don't ya think?

 

 

 

 

 

Thu, 01/30/2014 - 11:34 | Link to Comment syntaxterror
syntaxterror's picture

Do whatever it takes! Lap it up you stupid sheep!

Thu, 01/30/2014 - 11:48 | Link to Comment 1stepcloser
1stepcloser's picture

Is that code for we will sell dollars and buy rubs

Thu, 01/30/2014 - 11:50 | Link to Comment Volkodav
Volkodav's picture

Elvira Nabiullina is Tatar. Many Tatar bankers especially Volga regions.

Thu, 01/30/2014 - 11:54 | Link to Comment Caracalla
Caracalla's picture

Ahh, all this is background noise.  Just BTFD and short UNG and you will be fine.  This EM issue will blow over shortly.

Thu, 01/30/2014 - 12:25 | Link to Comment mandrak0s
mandrak0s's picture

"we don’t need to borrow at any cost”

 

To bad we can't say the same.

Thu, 01/30/2014 - 13:24 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Crypto-Currencies (CCs) are feared by ALL fiat currencies and its Issuers (CBs and their shareholders).

Since the Russia and its Ruble is under attack from the US and EU, the Russian CB is simply trying to front-run a run from the Ruble toward Bitcoin.  A predictable reaction... Queen takes Pawn.

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