Russian Central Banker: 'Even In Our Nightmares, We Couldn't Have Imagined This'

Russia’s currency is in crisis right now. But what’s even worse is that Russia central bank is acting like they have been totally blindsided.

“What’s happening right now, even in our nightmares we couldn’t have imagined this one year ago,” the deputy chairman of the Russian Central Bank, Sergei Shvetsov stated on Tuesday reports Interfax.

“The situation is critical,” he added. “Unfortunately, we can’t always predict even the short-term prospects in our financial market. Many participants have found themselves in a difficult situation thanks to thiese events. Believe me, the choice made by the board of directors of the central bank — it was a choice between really bad and really, really bad.”

In the middle of the night on Tuesday (late Monday EST), the Russian Central Bank raised rates up to 17% from 10.5%. The bank’s statement said that the decision was driven by the need to limit significant devaluation in the ruble and inflation risks.

It did not work.

The Russian currency fell to new lows, reaching 79 rubles to the dollar and 100 rubles to the euro on Tuesday. At first, it opened 8% stronger after the central bank’s rate-hike. 

Following all the news, one Russian bank manager stated today: “this is the end of the banking system.”

“The challenges are many,” Shvetsov continued. “In the coming days, I believe, that the situation will be comparable to the most difficult period in 2008.”

“I think that the experience gained over the many crises will help [Russians] find the right solution and to survive this situation. I really hope that,” he added.

You can read the full story on Interfax here.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.