Russian ruble: stay short, stay safe

٢١ أغسطس ٢٠١٥

My chart shows the price of Brent oil measured in Russian ruble. As you can see the devaluation of Russian currency proceeds in line with the falling price of crude. Oil and gas income accounts for over 50% of federal budget revenue in Russia. Therefore weaker ruble is necessary to offset the effect of lower oil prices. That way pensions will get paid even when oil trades at $30.