Russia’s currency and stock market have been getting bludgeoned lately, as sanctions and capital outflows have damaged the domestic economy.
And it’s getting worse today.
Bloomberg reports that Russia is weighing capital controls to stem the rush of outflows from the country. Capital controls are legal limits on how much money you can take out of an economy, a drastic measure that countries sometimes take to rescue a currency or financial system in the midst of a crisis.
Of course, talking about stemming the rush of outflows only encourages outflows (as people try to get ahead of the restrictions), and so the Ruble is tanking on the news.