How Savers in Belarus Got Robbed Blind

Belarus devalued its currency by 36% Monday night, according to Reuters. The International Monetary Fund urged Belarus to make the move back in March, as the country's foreign currency reserves dwindled. Back then, the Bank of Belarus ruled out a "significant one-time adjustment in the exchange rate of the Belarussian ruble." Apparently they changed their mind. According to the Wall Street Journal, even with the devaluation, the ruble remains over-valued, as the "black market" exchange rate remains below the official exchange rate. On Saturday, Reuters reported that Belarus was planning to sell its stake in the country's gas pipeline to Russia at a price of $2.5 billion. Belarus was planning on receiving a bailout loan from Russia before the sale went through. The gas pipeline deal would give Russia complete control over Belarus' pipeline network which provides Europe with a significant amount of energy resources. Traders looking to play the broader Russian economy might consider Market Vector Russia ETF Trust RSX. RSX attempts to return a value corresponding to the general Russian economy. If Russia is able to gain more control over the broader economy of Belarus, it may prove bullish for the Russian economy.