The term comes from the devaluation of the Latin words, their translation means a fall, reducing the cost. Based on this, a devaluation in Russia to understand the fall of the ruble relative to the "currency basket" where 55% of U.S. and 45% in the euro "currency corridor." It is set by the Central Bank of Russia and is to establish the limits of the exchange rate fluctuations, by purchase and sale. The main task of "currency corridor" is to deter the growth rate, and limit the scope of which is strictly laid down in legal documents. This is sort of a safety net against possible financial risks.
Very stressful for Russia was the devaluation in 1998, when the August 17 crisis rolled across the country, there was a collapse of the ruble, the bank accounts were frozen, was introduced a unilateral moratorium on all banking transactions with the West. There has been a jump in the dollar against the ruble, a couple of months, the increase was significant, almost threefold. The start was given from 6 rubles per unit, by the end of the year, many experts predicted that the dollar will establish positions in the area of 30 rubles.
Is it possible to have expected such a turn of events, hedge, prepare? Background to the financial crisis were. Let us recall the public assurances of President Yeltsin, there will be no default, that everything is under control. The growth rates of government short-term bonds exceeded 100%. On the day of default, 17 August 1998, the central bank widened trading band to 6-9.5 rubles. That was a very risky move, the ruble was a catastrophic situation, financiers knew that Russia on the verge of boom. Subsequently renounced support the ruble. What was happening in society can not describe the shock, panic, despair. People woke up almost beggars, all their savings into ashes, it seemed that it could not be, it is not in our country, and soon all be over. But did not end, the dollar strengthened their positions. Plus, in a shake-up of the economy was - Russia's economy has reached a qualitatively new level, has become competitive. Analysis of the industry, trade and the economy in general has shown that major changes Russia waiting for a long time, they are necessary as air.
For 13 years, the rise in consumer prices has changed. For example, the dollar has risen from 6.1 to 30.60 per unit, bread, from 2.1 to 23 rubles per loaf, gasoline from 2.3 to 25-27 rubles per liter. In the late 2000s, loomed the specter of the 1998 financial crisis. Problems of the USA and the EU, as well as Greece, which was on the verge of defaulting, forcing the global economy to be ready for new shocks.
Sure, the default of 1998 came as a shock for the whole of our country, on the other hand, the economy was a catalyst for further development in the new qualitative level, the country pushed investments from foreign companies began to establish the production, there were jobs. Russia learned a lesson, only time will tell, let's hope for the best.