The Russian rouble drops to its lowest level in a year.

 

The Russian rouble drops to its lowest level in a year. image

Very immediately after Russia invaded Ukraine, the value of the Russian rouble dropped to its lowest level in a year.

On the Moscow Stock Exchange, the currency fell to 82 roubles to the US dollar on Friday morning (MOEX).

Massive economic sanctions have been imposed on Russia since it launched an invasion of Ukraine in February 2022.

Russia reported earlier this year that its GDP contracted by 2.1% in 2022 rather than the 15% decline that had been anticipated.

On Friday morning, the rouble lost 2% of its value versus the euro, falling to 90.06.

Traders said that several reasons, including falling oil prices in March that reduced Russian earnings and the sale of Western enterprises in Russia after the invasion, were responsible for the decline.

While it was considerably worse in the immediate aftermath of the invasion, when it plunged to 113 roubles per US dollar, the value of the rouble has not fallen to this low since April 2022. The currency reached 50 roubles in July when it stabilized, but it has since fallen once again.

While President Vladimir Putin had maintained that the economy was resilient to economic sanctions, he acknowledged this week that Russia would suffer as a result of the penalties.

What sanctions are put in place against Russia?

additional Russian sanctions as the US commemorates the war’s anniversary

The latest decline, according to Russia’s Finance Minister Anton Siluanov, was caused by adjustments to imports and exports into the nation.

The currency rate changed by “the circumstances of changing international economic situations,” he said.

When asked whether citizens of the nation needed to worry, he said that the rouble was expected to increase due to the sustained export of Russian energy on the international market.

Russian oil, a major source of revenue for the nation, was subject to a price ceiling late last year because of actions by Western nations. That was only one of several sanctions put in place by countries that supported Ukraine.

Nonetheless, despite these sanctions, the Russian economy has contracted far less than anticipated, surprising critics with its resiliency.

When energy imports into Europe drastically decreased in 2022, consumers in China, India, and other countries filled the gap. Local businesspeople filled the void left by the withdrawal of hundreds of Western corporations from Russia in opposition to the invasion.

According to Russia, the sanctions are forcing it to adjust its economy, which it intends to have done by 2024.

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