Looks like as rouble devaluation might be coming.
Russia’s central bank has raised interest rates a full percentage point to 12pc to prevent a collapse of the rouble following a day of mayhem on the Moscow markets, prompting concerns that the financial crisis may be spiralling out of control.
When the rouble was soaring as a petro-currency my suppliers insisted that this meant I had to pay a higher price in $ to help cover their costs. Fair enough actually. It’s just that if there is a devaluation, I don’t see them offering to lower their prices.
Funny that, ain’t it?
2 responses so far ↓
1 Mark Wadsworth // Nov 12, 2008 at 3:07 pm
Yup, that Russian naval base in Iceland is looking increasingly unlikely … the one over by the freezer section.
2 Winston // Nov 12, 2008 at 7:09 pm
A similar thing happens to us in the biofuels business. When prices were rising fast we honoured our contracts at the lower rate which was agreed a month earlier. Now the market has collapsed buyers are reneging on contracts made a month ago when the price was higher.
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