The ruble fell to a record with the default 1998 to 10%

Dollar settlements "tomorrow" to 20.23 MSK increased by 6.3 rubles - to 64.4 ruble, the euro - 6.6 rubles to 78.9 rubles, from the data of the Moscow Exchange.

Dollar settlements "tomorrow" to 20.23 MSK increased by 6.3 rubles - to 64.4 ruble, the euro - 6.6 rubles to 78.9 rubles, from the data of the Moscow Exchange.

MOSCOW, December 15  

 The ruble against the currency basket in the "Black Monday" felt a strong decline since the credit default 1998: panic selling has not correlate with the dynamics of world oil prices. Foreign currencies rose for a day on record for many years six rubles, exceeding 64 rubles per dollar and almost reaching 79 rubles per euro.

Dollar settlements "tomorrow" to 20.23 MSK increased by 6.3 rubles - to 64.4 ruble, the euro - 6.6 rubles to 78.9 rubles, from the data of the Moscow Exchange.

 Panic in the "Black Monday"

Ruble in the morning on Monday continued to lose ground, even though the relatively positive trend in oil prices. So, in the morning black gold has grown in the correction, testing the strength level of 63 dollars per barrel mark Brent. However, in the evening, this increase was at a loss and the price returned to negative - below 62 dollars.

Against this background, the attack on the ruble increased. During the day (about 16.00 MSK) in the mark of 61 rubles to the dollar in the market there was an increase trading activity - their volume for 20 minutes was about $ 1 billion. At the same time the dollar rolled away down more than 1 ruble, suggesting that output from the Central Bank intervention to support the ruble.

But the respite lasted only until 17.30 MSK, when the dollar and the euro went up again, updating the historical height. By evening they were added to 6 rubles, which is not mentioned in the Russian market for about 15 years.

Consistent with the gloomy background and the Central Bank forecasts released. In particular, the regulator expects capital outflow from Russia in the fourth quarter of 2014 at 49 billion dollars. Terms of external borrowing for the issuers of the Russian Federation remain unfavorable for at least the next one to two quarters in terms of sanctions, which will continue until the end of 2017. The fall in GDP of Russia, while maintaining oil prices at $ 60 per barrel in the medium term will be 4.5-4.7% in 2015 and 0.9-1.1% in 2016, according to the Central Bank.

Forecasts and recommendations

Stop-win game against the ruble can now only turn on the oil market and collapse the limits on weekly auctions conducted by the Central Bank repos, said Yuri Kravchenko from IR "Veles Capital".

"As for the second, something really drastic measures market regulator had still not seen, and the threat of the authorities of the" cuts "ruble liquidity remain just words," - he added.

Today the dollar almost doubled its value in rubles since the beginning of 2014, said Sergei Kochergin of companies Exness. "The dynamics of the oil market should not cause a panic in the markets. Unfortunately, market participants ignore statements CBR that in Russia will not impose restrictions on the movement of capital. Thus, the sale of rubles can only be explained distrust of speculators in the Russian regulator" , - he said.

"This week, the ruble will support probably not even the tax period in the Russian Federation or the rebound in oil prices, and the speech of the President of the Russian Federation Vladimir Putin on 18 December. During the week, we can not rule out the return of the dollar to 58 rubles," - added Kochergin.

Russian Ruble Is Collapsing

Russian Ruble Is Collapsing

MOSCOW   - Russian ruble came under heavy selling pressure Tuesday 16 2014, falling at one point a catastrophic 20 percent to a new historic low despite the massive pre-dawn increase in interest rates by the Central Bank of Russia. Russian officials clearly frightened, though state television urged citizens not to panic.

"The situation is critical," Deputy Central Bank Chairman Sergei Shvetsov was quoted by Russian news agencies as saying. "We could not imagine what was going on in our worst dreams."

Surprise decision of the Central Bank to raise interest rates to 17 per cent compared to 10.5 per cent in the middle of the night on Tuesday were a desperate attempt to maintain the problem valyutu.Rubl fallen sharply in recent weeks, and is down more than 60 percent since January, due to lower prices oil, as well as the impact of Western sanctions imposed over Russia's participation in the crisis in Ukraine.

The collapse of the ruble stimulated ordinary Russians rush out and buy imported products such as refrigerators and cars, as inflation makes these items more expensive every day. It is also likely to pile pressure on President Vladimir Putin, despite its broad support.

The ruble is trading at 72 to the dollar on Tuesday evening in the afternoon - a modest improvement from before, when he hit 78.5 to the dollar.

Timothy Ash London Standard Bank described the fall of the ruble as "the most incredible collapse of the currency, I think I have ever seen in 17 years on the market, and 26 years, covering Russia."

"There is now a huge crisis of confidence in the Russian politicians in the eyes of the market," he said, adding that the decline is more surprising, given the hard currency reserves of Russia and the fact that he is working with a budget surplus.

Oksana Dmitrieva, deputy head of the Fair Russia faction in the Russian Duma, blamed the collapse of the ruble in the "chaotic and unprofessional" policy of the Central Bank. She said: "The government has no strategy" and maintains the ruble decline, "depends on official policy."

Central Bank interest rate movement Tuesday aimed at encouraging the development of currency traders to hold their rubles - it gives them a potentially greater returns, of course, compared to many other currencies such as the dollar, which returns the interest rates close to zero percent.

Depreciation of the ruble on Tuesday was caused by some kind of opaque trading on Monday with the participation of Rosneft, the company was seriously injured as a result of Western sanctions, which is run by a close ally of Putin, Igor Sechin.

Rosneft, Russia's largest oil company, raised 625 billion rubles ($ 10.9 billion at the time) in bonds on Friday with a yield lower than those for the equivalent of government securities. The Central Bank has approved securities as collateral in ruble auction on Monday, that is, the bondholders will have access to the Central Bank in cash.

Disclosure of movement of the bank shook markets Tuesday, because it reminded direct support of a company.

Sechin pleaded for help from the state to refinance debts of Rosneft, which has been hit with the Western sanctions and was cut off from Western debt markets.

The company, however, denied accusations that he was dumping rubles due to the economic situation, saying that it sells "only to attract financing for their projects in Russia." It promised that "not a single ruble ... will be used for the purchase of foreign currency."

State television, meanwhile, insisted that the weak ruble is actually good for the economy because it will stimulate domestic production and make exports cheaper.

Central Bank Chairman Nabiullina said the rate hike should stop inflation - higher borrowing costs effectively strangling economic activity, dampening downward pressure on prices. However, she acknowledged that the ruble will not immediately impact of rising interest rates, and added that it will take "some time" ruble before he finds fair value.

Other options available for the Russian authorities to stop the sale of rubles tide may be the introduction of capital controls or actual intervention in the markets - buy rubles naprimer.Tsentralny Bank intervened directly in the last few months.

Higher interest rates could eventually help the ruble, but it can cause a lot of difficulties in the economy, which is already heading for recession. Russian stocks were firm on Tuesday, though, with the benchmark by 2 per cent until the end of the day MICEX.

Neil scissors, chief economist for emerging markets in London Capital Economics, said the Central Bank rate hike will "further tightening of credit conditions for households and businesses and deeper recession in the real economy in 2015."

Given the huge Russia's dependence on oil revenues, the recent sharp fall in the price of oil hit the Russian economy. That is compounded by the fact that the Russian economy is not diversified enough to withstand the impact.

The average price of a barrel of oil fell below $ 56 from the year high of $ 107. Not long time ago government lowered its forecast for next year, predicting that the economy will plunge into recession. Most international forecasters think the Russian economy is set to contract next year.

Alexei Kudrin, Minister of Finance of Russia in 2000-2011, said on Twitter after the rate hikes that "the fall of the ruble and the stock market is not only a reaction to the low oil prices and sanctions, and (shows) distrust of the government's economic policy."

Kudrin said the rate hike "must be accompanied by government measures to increase investor confidence in the Russian economy." He did not say what steps he has performed.

The ruble fell to a record with the default 1998 to 10%

Leading MOD Selects RADA's Tactical Radars for Its National Alert System

• PRESS RELEASE
• December 4, 2014, 10:05 a.m. ET by 
Wall Street Journal

   Official contract!

RADA's Tactical Radar Systems Provide Volume Surveillance and Detection of Multiple Threat Types, Including UAVs, Mortars, and Rockets

NETANYA, Israel, Dec. 4, 2014 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (Nasdaq:RADA) announces the selection of its MHR-based tactical radars by a leading MOD of for its national alert system. The radars will detect and alert from short-range threats such as mortars, rockets, UAVs and alike.

Deliveries are expected to be completed during 2015.

The MHR - an S-Band, Software-Defined, Pulse-Doppler, AESA radar - has sophisticated beam forming capabilities and advanced signal processing, provides multiple missions on each radar platform, and offers unprecedented performance-to-price ratio. It is compact and mobile, delivering ideal organic, tactical surveillance solutions for force and border protection applications such as C-UAS, C-RAM, GMTI, air surveillance, and more.

According to Zvi Alon, RADA's CEO, "We are extremely proud with this competitive selection of our technology. This is a major award of a radar program for RADA, which joins other strategic awards for radar programs during 2014. We believe that additional leading countries and integrators will follow this selection."

About RADA

RADA Electronic Industries Ltd. is an Israel-based defense electronics contractor. The Company specializes in the development, production, and sale of Tactical Land Radars for Force and Border Protection, Inertial Navigation Systems for air and land applications, and Avionics Systems and Upgrades.

CONTACT: RADA 
         Dubi Sella (CBDO) 
         Tel: +972-9-892-1111 
         mrkt@rada.com 
         www.rada.com 

http://online.wsj.com/article/PR-CO-20141204-908579.html