2023-10-08 19:32:15
The ruble has been struggling for months due to the imposition of Western sanctions against Russia, hurting the bank accounts of the general population.
The value of the Russian ruble fell again, trading at more than 100 rubles to the U.S. dollar on Tuesday morning, despite the central bank’s attempts to quell inflation and currency deterioration.
The ruble has been struggling for months due to the imposition of Western sanctions against Russia over its war in Ukraine, which has limited the purchasing power of the general population.
On the Moscow Stock Exchange, exchange rates were 100.11 rubles per dollar and 104.65 rubles per euro at 07:03 local time (04:03 GMT).
The ruble recovered slightly later in the day, but remained above 99 per dollar and 104 per euro.
This is the ruble’s biggest fall since mid-August, when it exceeded 100 to the dollar for the first time since March 2022 and the collapse of the Russian currency following its large-scale invasion of Ukraine.
In August, the Central Bank of Russia (CBR) was quick to raise its key rate from 8.5% to 12% at an extraordinary meeting called after Kremlin advisor Maxim Oreshkin criticized the ” accommodative monetary policy” of the BCR.
In mid-September, the key rate was raised further to 13%.
However, the CBR’s decision appears to have had limited impact so far, in the absence of stricter exchange control measures and the introduction of restrictions on Russia’s export of gasoline and diesel. end of September.
After a year and a half of heavy international sanctions, and despite rapid economic adjustment, Russia is facing a series of economic difficulties: rising inflation (+5.15% in August), weakening of the ruble, labor shortage of work in certain sectors, brain drain. abroad, and a sharp drop in revenues from the sale of hydrocarbons.
Against this backdrop, the CBR said in mid-September that it expected growth to slow in the second half of this year.
In September, President Vladimir Putin, while affirming the failure of Western sanctions, denounced the weakening of the ruble as the main cause of inflation in the country, ordering the government and the CBR to take the necessary measures to stabilize the situation.
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