Weakest value in 16 months: Russian ruble continues to collapse

Weakest value in 16 months: Russian ruble continues to collapse

The Russian ruble has on its week-long descent passed the mark of 100 rubles for one US dollar. In Moscow stock exchange trading on Monday morning, a dollar cost 101.16 rubles, as reported by the state news agency Tass. The euro was quoted at 110.3 rubles. According to the information, the Russian currency was last that weak at the end of March 2022.

An economic advisor to President Vladimir Putin, Maxim Oreshkin, made the central bank’s easy monetary and credit policies were responsible for the crash. The increase in consumer credit is of particular concern, the former economy minister wrote in an article for TASS. However, the central bank has all the means “to to normalize the situation in the near future“.

After the attack on Ukraine ordered by Putin, the ruble exchange rate was even weaker in February and March 2022 been. Then the head of the central bank, Elwira Nabiullina, who actually wanted to resign, managed to stabilize the currency. Among other things, it introduced controls on the movement of capital.

The current downturn began with the mutiny of Wagner’s private army and its chief Yevgeny Prigozhin in June; this triggered deep insecurity.

In the weakness of the ruble come one set of economic problems of the belligerent and sanctioned country. According to Moscow, the economy has grown as a result of government spending on the war, and the population has money in their hands.

But Imports are more expensive due to the sanctions become. At the same time, Russian revenues from oil and gas exports have fallen. (dpa)


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