Russian currency rouble has fallen
The Russian curruncy (rouble) has fallen to its lowest value for sixteen (16) months, falling past 100 per United state dollar.
For the ukrine war the decline comes as pressure grows on the Russian economy, with imports rising faster than exports and military spending growing .
Invasion of ukrine In feburary 2020 russia has been targeted with sanctions by Western countries following its
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The russia currency(rouble) plummeted after war first broke out, but was bolstered by capital controls and oil and gas exports.
Since the war it has fluctuated in value , but has lost about a quarter of its value overall against the dollar since Ukraine was invaded.
Earlier on Monday, the rouble was 101.04 per (US) dollar. The more roubles per dollar means the currency is weakening, as it will take more of it to buy one US dollar, most powerful currency in the world which is typically seen.
That a key interest rate increase is possible, but maintains that it sees no threat to the country's financial stability.said by russian central bank.
The bank hiked rates from 9.5% to 20%, when russia conquer ukrine but began cutting them shortly afterwards.
Said the rouble had been "weakening progressively" this year, but added "the pace has picked up since late July".Said by jane foley managing director at rabobank london
"The weakness in the rouble reflects a weakening fundamental backdrop in Russia," she added, pointing out that the country's budget was in deficit and it was relying on imports from China and Turkey, but facing pressure over exports.
Said that Russia's trade, and therefore its economy, was being hit by Western sanctions, "especially for oil and gas".said by the russ mould investment director aj bell.
Since the explosion of war, many of EU countries which relied on Russian oil and gas have pledged to wean themselves off imports from the country and find alternative or other suppliers.
In December 2022, G7 and EU leaders introduced a price cap plan aimed at limiting the revenue Russia earns from its oil exports, by trying to keep it below ($60) a barrel. In the value of Russia's exports for oil dropping this has played a apart.
In january The gas taps to Europe Russia also turned off the, leading to fears of blackouts. Germany, once a large(importer) it no longer depended on the country's fossil fuels for its energy supply.said by importer
"Exports are down, so hard currency inflows are down, and imports are up, and even reliable trading partners such as China appear reluctant to take roubles," said Mr Mould.
He added Russia's exclusion from Swift, an international payment system used by thousands(1000) of financial institutions, had also hit Moscow.
That "rouble weakness must also be set against dollar strength", with the American currency "gaining ground against emerging currencies across the board".said by mr mould
He said this was partly due to the strength in the US economy, which he said "is forcing the Federal Reserve to raise interest rates in contrast to many emerging central banks, which are starting to cut (notably Brazil and Chile)".
"Higher returns on cash in dollars and lower ones in other currencies can increase the relative attractiveness of holding greenbacks, or assets denominated in them," .mr mould added
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