2023-10-06 11:07:23
(Moscow) The ruble continued its fall that began at the start of the week on Friday, trading at more than 101 to the dollar, the day following Vladimir Putin’s declarations on the “stable” economic situation in the country.
The ruble, under the effect of international sanctions because of the assault on Ukraine, has been struggling for months, weighing in particular on the purchasing power of the population.
On the Moscow Stock Exchange, the price was 101.19 rubles per dollar and 106.66 rubles per euro at 10:49 a.m. local time (3:49 a.m. Eastern).
On Tuesday, the ruble already briefly exceeded 100 per dollar, an unprecedented fall since mid-August which occurred for only the second time since March 2022 and the collapse of the Russian currency in the wake of the offensive in Ukraine.
The ruble then rose slightly, but resumed its fall Thursday evening, in the middle of Vladimir Putin’s speech, during the international forum in Valdaï, Russia, where the Russian president praised the “stable” economic situation in his country .
“We have overcome all the problems that emerged following the implementation of sanctions once morest us and we have started a new stage of development,” assured Mr. Putin.
“The overall situation is stable,” he said.
As for inflation, “it is true that it is currently increasing at 5.7%, but the Central Bank and the government are taking concerted measures to mitigate possible negative consequences,” added the Russian president.
The Central Bank of Russia (BCR) rushed in August to raise its key rate from 8.5% to 12%, then raised it to 13% in mid-September.
This decision by the BCR, however, seems to have a limited impact for the moment.
After a year and a half of heavy international sanctions and despite rapid adaptation of the economy, Russia is facing a series of economic difficulties: inflation, weakening of the ruble, labor shortages in certain sectors, flight brains abroad, significant drop in income linked to the sale of hydrocarbons.
In this context, the Central Bank said in mid-September it expected a slowdown in growth in the second half of this year.
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