Russians ditch dollar for euro

ChrisD(RJ) chrisd at russiajournal.com
Wed Mar 19 08:11:34 PST 2003


DoreneFC at aol.com:

This half sounds like total spin to avoid the conclusion that average Russians are voting with their pocketbooks because of the situation in Iraq. --- I think it's mostly because of the exchange rate (from the viewpoint of ordinary people). I don't know if you've been to Moscow lately, but there are currency exchange booths on every block, often several, and the all show the ruble-dollar and -euro exchange rate, updated on a daily basis. It's 31 rubles to the dollar, 34 to the euro right now. I've started to see people exchanging euros. ---

It would occur to me to check out how much of dollar holdings in Russian are

individual vs corporate / business accounts. I am guessing that is not the easiest number to come up with.

--- It would be impossible. Few individuals with money are going to tell you whant they earn, much less businesses. The middle class is mostly paid under the table. ---

It also seems possible that there are a mix of reasons why corporate accounts are still sticking with the dollar. One reason might be that there are probably a fair number of administrative costs associated with a big switch for the short term. So if the situation in Iraq

goes badly, would there likely be more corporate switching? ---

Almost certainly, I would think.



More information about the lbo-talk mailing list