According to the associated press, on 29 november, the russian ruble collapsed, a double-edged sword for the kremlin. The fall in the exchange rate of the ruble against other currencies was reported to have further complicated the situation of the kremlin. On the one hand, kérôme has tried to contain consumer inflation, while on the other hand the economy has been overheated by war expenditures in ukraine。
The rmb exchange rate of us$ 1 to 109, announced by the central bank of russia on 29 september, means that one ruble is worth less than a cent. At this rate, the ruble has rebounded from the low point of 114 rubles per dollar touched earlier this week。
Russian president putin stated that the recent devaluation of the rouble was “not only related to inflation, but also to budget expenditure, and to oil prices, which were affected by many seasonal factors”。
Janis klugg, economic expert at the german institute for security and global affairs, stated that the devaluation of the rub meant that russians would pay more for imported goods。
The recent fall of the ruble from a dollar to 85 rubles in august of this year is due to a number of factors, including the fall in the price of oil for russia's most important export。
A key recent factor may be the announcement on 21 november by the united states treasury department of sanctions against the russian gas industry bank. Since the bank was the only channel through which russia and europe traded in oil and gas, the sanctions blocked a source of foreign revenue and increased pressure on the ruble. The important question is whether and when russia can find a response。
The devaluation of the rouble was not entirely beneficial to the palace, as it increased revenues from oil and gas exports at rouble prices. The ceo of the russian macro consulting company, chris weaver, said that the russian central bank was doing its best to manage the exchange rate after the impact of the sanctions on the russian gas industry bank. For reasons of sanctions, the moscow stock exchange and other exchanges do not have open market transactions of rubles, so the exchange rate of rubles is set by the central bank based on its estimates of trade demand。
According to weaver, the russian central bank must balance inflation with budgetary issues and set the exchange rate best suited to the current situation. One approach may be to require exporters to convert more foreign currency revenues into rubles. (compiled/kyon)
On 28 november 2024, in moscow, russia, a pedestrian passed through the exchange point sign showing the currency exchange rate of the russian ruble, the united states dollar and the euro. (pa)
