On Nov. 22, the Russian Ruble plunged to a new low – the US dollar exchange rate rose above the 105 Ruble mark for the first time since March 2022, according to data from Investment.com which monitored rates over the last two years following Russia’s full-scale invasion of Ukraine.
This significant milestone highlights ongoing economic turbulence in Russia, raising the likelihood of further inflation and economic instability.
JOIN US ON TELEGRAM
Follow our coverage of the war on the @Kyivpost_official.
This is not the Dollar vs Ruble's peak – on March 7, 2022, it reached 115 Rubles to one dollar. But 105 Rubles represents another milestone for Russia's national currency.
Russian Ruble to US dollar exchange rates. Source: Investing.com
Why Is the Ruble Losing Value?
The currency’s decline is fueled by a combination of factors:
- Western Sanctions, especially against Russia’s energy
- Lower Energy Prices: Reduced global oil and gas prices have hit Russia’s export earnings hard. Starting in September 2023, the closing prices of Brent, OPEC basket, and WTI crude oil decreased from almost $100 per barrel to approximately $70 dollars per barrel, according to Statista.
- Soaring Fiscal Spending on military equipment and social expenditure on weapons, higher military salaries and one-time payments to military families.
Is Russia’s Central Bank Intervention Working?
The Bank of Russia recently hiked its key interest rate to 21 percent in a bid to stabilize the Ruble, though inflation in Russia was estimated at 8.5 percent in October 2024. Inflation previously hit 9.13 percent in July 2024 according to Russia’s central bank statistics.
You can also highlight the text and press Ctrl + Enter
