Russia is no longer able to inflate the value of its currency. The initial actions were no longer effective, and the blackmail that the Kremlin wanted to use against the recipients of raw materials did not help much.
Russia is sinking. Closing the stock exchange and forcing countries to pay for raw materials in rubles brought only temporary results. The exchange rate of the Russian currency has just hit the bottom.
A ruble worth one cent
The ruble exchange rate is scrubbing the bottom. The Russian currency has not been so weak since Vladimir Putin started his criminal war in Ukraine. However, the collapse of March last year was stopped by the very aggressive monetary policy of the central bank of Russia. Overnight, it was decided to save the ruble, the stock exchange in Moscow was closed and further attempts were made to stay “afloat”. With each subsequent month, the Kremlin tried new moves.
After the introduction of further sanctions, which cut off Russian banks from the international SWIFT payment system, Putin’s decree obliged oil and natural gas companies to accept payments only in rubles. Any country that did not agree to this was immediately cut off from supplies.
Russia stopped intervening. The ruble exchange rate collapsed
However, in the official data released at the end of July, analysts noted that Russia had stopped intervening in the currency market. This was the beginning of the problems of the ruble, whose exchange rate began to plunge sharply.
Due to the gigantic spending on the army and its constant reconstruction, the lack of customers for natural resources, as well as being cut off from the Western economy due to sanctions, the Russian treasury is empty. The currency problem is aggravated by the nervous movements of the central bank, which has started to print rubles.
All this pushed the value of the Russian currency beyond the psychological limit. Currently, one dollar costs more than 97 rubles, which means that one dollar is already worth almost as much as a cent. These data also look interesting in comparison with the Polish currency. One ruble is currently slightly more than 4 groszy.