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Strategies & Market Trends : Investment in Russia and Eastern Europe -- Ignore unavailable to you. Want to Upgrade?

To: Paul Berliner who wrote (781)	11/3/1998 1:06:00 PM
From: Paul Berliner	Read Replies (1) \| Respond to of 1301

One more important thing I forgot to add: To invest today in russia is also a bet that the rouble will hold relatively steady or even appreciate - a bet that is simply preposterous. The govt. has to print tons of money under each and every scenrio imagineable to pay off debt, pay employees, buy food for the masses (currently in 'negotiations') and stay functioning. There is no scenario available where the rouble can appreciate - which is probably why the CME has discontinued trading in rouble futures. The russian govt. has instructed all companies doing business abroad to convert a percentage of their revenues into roubles immediately upon receipt but the effect will be miniscule.