The ruble exchange rate fell and Russia s economic stability is facing challenges

Mondo Finance Updated on 2024-01-28

Moscow, November 10, 2023 - The Russian economy has recently faced serious exchange rate problems, the ruble continues to **, and it is currently unable to stabilize the exchange rate. Today's official exchange rate is 96 to 1 US dollar5 rubles. This has further exacerbated uncertainty in the Russian economy.

Currently, Russia has implemented a foreign exchange policy that allows the exchange of dollars for rubles, but does not allow the exchange of rubles for dollars. In short, Russian citizens cannot exchange dollars for rubles, only for dollars. Thus, in the Russian black market, the exchange rate is as high as 300 rubles, which is far from the official exchange rate.

Due to the impact of international financial sanctions, the Russian exchange rate was initially reduced to 150 rubles to 1 dollar. At the same time, Russia began to peg gas ** to the ruble. After a period of stabilization, the exchange rate rose to 50 rubles to 1 dollar. However, the ruble exchange rate was then again **, although it remained stable at the level of more than 60 rubles to 1 dollar.

Since 2023, the ruble exchange rate has begun to rapid**, and Russia has tried to take some extraordinary measures to stabilize the exchange rate, including ** the yuan. However, this effort has not yielded significant results. In response to the uncertainty of the situation, banks began to restrict Russian customers from sending yuan overseas. In this case, Russia does not seem to be able to effectively curb the depreciation of the ruble. According to current trends, the ruble exchange rate may not break through 100 points anytime soon.

The decline in the ruble exchange rate shows that the Russian economy is not as strong as officially claimed. Russian exports of oil and petroleum products are expected to fall by more than 20% and gas exports by almost half by 2023. This means that without other supporting factors such as mobile phones and the yuan, the Russian economy could be at risk of collapse.

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