Since the start of the war, the Russian currency has lost about a quarter of its value against the dollar. Currently, for one dollar you have to pay more than one hundred rubles. It hasn’t been this bad in 17 months. The Kremlin found the culprit in this situation.
The Russian currency has broken through the psychological barrier – one dollar costs more than 100 rubles. Thus – as noted by RMF FM – the ruble records 30 percent. a decrease since the beginning of the year and at the same time the weakest result in 17 months, i.e. since the beginning of the Russian invasion of Ukraine. The radio station points out that during the war, which has been going on for almost a year and a half, the Russian currency has lost about a quarter of its value against the dollar.
The ruble is weakening. The Kremlin blames the Central Bank
The weakening ruble worries the Kremlin, which has found the culprit in this situation. It is the Central Bank. Maksim Oreshkin, an economic adviser to the President of the Russian Federation Vladimir Putin, criticized the institution in a publication for the TASS agency for conducting too lenient monetary policy.
– The main reason for the weakening of the ruble and accelerating inflation is too soft monetary policy. The Central Bank has all the tools at its disposal to manage the situation in the near future and ensure that lending rates reach sustainable levels – emphasized Oreshkin, admitting that the weak ruble complicates the transformation of the state.
Recall that in order to save the Russian currency, the Russian Central Bank decided last Thursday to suspend foreign currency purchases. This decision is intended to stabilize the ruble exchange rate.
BlueBay Asset Management analyst Timothy Ash believes that the weakening ruble is “a vivid and tangible act of condemnation of the Russian invasion.” According to the expert, the state of the Russian currency is determined primarily by lower budget revenues due to limited opportunities to sell fossil resources and increased import costs caused by Western sanctions.