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Putin’s Oil Blunder Costly for Ruble & Fx Reserves

December 16, 2014

Soon after the OPEC decision to go on hold, Russia should have sensed difficult times ahead & instead hiked its Overnight Rate to 22 % & 1-WK 18% with affirmation to further use its Monetary Tool to hike its Interest Rate to arrest Financial unrest & Rubles fall.

And simultaneously, should have announced slash of 1 Million Barrels Per day of oil with further cut up to 2 Million Barrels Per Day if oil prices does not stabilize. Such announcement would have helped sharp rise in oil price & have covered the Russian production cut gap as well.

However, it can still be effective, though it may not have same impact.

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