World Bank predicts that Russian RUBLE will depreciate in the short-run

The leading economist of theWorld Bank in Russia Jelko Bogetich when giving the interview to "Komsomolkaya Pravda", said tha the depreciation of Ruble is unavoidable and reasons behind are fundamental.

Reasons are:

• Russia is one of the leading countries in terms of export of OIL



• Oil prices are dropping, because of Global Financial Crises



• Russian economy depends on prices of oil significantely



• Value of Rubles depends on oil prices to the same extent



• Jelko Bogetich claimed: "When the prices for oil go up, value of Rubles rise,on the contrast, when the prices of oil go down,then value of Rubles drop"



• At the moment the situation is reflecting the second statement ,therefore the Ruble is going to depreciate.

But the ood news are according to the economist of the World Bank is that the rate at which russian currency is going to depreciate is smooth and stable. Also he said that the situation is not going to be anything like the defaukt of Ruble in 1998, because Russian economy is not in bad state,even comparing to some developed countries. Also, he stated that by looking at forcast of Russian economy, it is possible that Russia by the end of year 2009, can overcome the worst part of the finacial crisis.

I guess these are good news for Russians. Fingers Crossed!!!