The Russian ruble has fallen to its lowest level since April 2022 against the dollar and the euro. Moscow has long been able to artificially strengthen its currency through various financial measures – but the low price of energy, among other things, has now caused the ruble to plummet.
After the start of the offensive war against Ukraine, the Russian ruble has fallen sharply in value. However, through manipulation, Moscow managed to artificially strengthen its currency, counteracting the impact of Western sanctions on the exchange rate. For example, foreign exchange trade was restricted by the central bank and interest rates were raised massively. Many Russians therefore invested their savings in rubles and not in foreign currencies.
But now the price has collapsed – the threshold of 90 rubles per euro has been broken. The Russian currency fell over one percent against the US dollar to 82.28 during early morning trading in Moscow and one percent against the euro to 90.06.
Low oil prices depress export earnings
The reason, traders say, is a slew of problems, including the sale of Western assets to domestic investors, which fueled demand for the dollar. At the same time, low oil prices weighed on export earnings in March.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
