Scotiabank's Tihanyi on Outlook for Ruble, Rupiah

The video discusses the challenges faced by emerging markets, particularly Russia, in the context of currency crises. It compares the current situation to the 1998 financial crisis, highlighting the impact of sanctions and oil price volatility on Russia's economy. The role of central banks in stabilizing currencies through interventions and interest rate adjustments is examined, with a focus on Russia's efforts to support the ruble. The video also explores Indonesia's strategy to manage its currency, the rupee, by allowing gradual depreciation to maintain competitiveness while controlling volatility.

What are the main factors exacerbating Russia's current financial situation compared to 1998?

• Improved trade terms

• Geopolitical tensions and sanctions

• Increased domestic debt

• Higher oil prices

What strategy is Russia's central bank using to support the ruble during the crisis?

• Lowering interest rates

• Raising interest rates and intervening in the market

• Printing more currency

• Reducing foreign reserves

What domestic issue is Russia facing due to the currency crisis?

• Increased foreign investment

• Stable economic growth

• Currency appreciation

• Fear of currency depreciation leading to inflation

How is Indonesia's central bank managing the currency slide?

• By increasing foreign debt

• By allowing gradual depreciation to adjust external accounts

• By fixing the exchange rate

• By reducing interest rates

What is the primary goal of central banks during a currency crisis?

• To defend the currency and restore stability

• To increase domestic spending

• To increase inflation

• To reduce foreign trade