Rouble crashes as Russian economy teeters on brink of recession

by Howard Amos

Currency instability is reviving memories among Russians who suffered after the country's default in the 1990s .

Russia's economic difficulties intensified on Friday as the beleaguered rouble crashed during morning trading, stoking fears that the country was on the verge of a full-blown currency crisis reminiscent of the 1990s.
The Rouble has fallen steadily in recent months amid rising tensions with the west, but it took a dramatic downward lurch earlier this week, plunging more than 10% in 48 hours.
The instability of currency is reviving uncomfortable memories among Russian people, many of whom suffered after the country's default in 1998 when savings were wiped out and queues formed at exchange points as the rouble was dramatically devalued amid spiraling inflation.
Economic problems in Russia even threaten to undermine the power base of the president, Vladimir Putin, who has built his political reputation on a promise of stability, the restoration of Russia's great power status and rising living standards. He has made few public comments about the Rouble since declines began to accelerate last month.

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