2y ago

Russia’s central bank to hold extraordinary meeting after rouble falls to 16-month low

www.theguardian.com

Bank will discuss interest rate after high spending on war in Ukraine and drop in export revenues put further pressure on Russia’s economy.

6 comments

1 dollar is about 98 rubles at the moment.
When I visited Russia like 15 years ago, it was 1 dollar to 33 rubles. Although shortly after I visited it went to 66 rubles.
That’s a pretty significant drop in value.
- shortly after I visited it went to 66 rubles
  Don't know what you did there but you should visit it again.
  
  College roommates we’re from there I went with them and stayed with their family.
- In the same timeframe, most wages not significantly changed, a big cup of fast noodles went from 20 to 100 roubles, bread 10-15 to 50+, simple 0,5L of bottled water gone 50 from 15. Hoping it would bounce back from 100 to 90-something is kinda ridiculous, especially as these drops were all self-inflicted and it was easy not to cause them in the first place. I don't understand how you as a brief visitor could observe these dramatic changes in time, but locals around me can't or don't have a problem with it.
  
  Well, I used to work in banking and was studying international business in grad school around the time I was there. So I think it’s just the kind of stuff I was exposed to.
🤖 I'm a bot that provides automatic summaries for articles: ::: spoiler Click here to see the summary Russia’s central bank has announced it will hold an extraordinary meeting on Tuesday to discuss the level of its key interest rate after the rouble fell to its weakest point in almost 17 months.
On Monday morning, the central bank said it saw no threat to Russia’s financial stability from the rouble’s fall, blaming the currency’s slide in value on a drop in export volumes and growing internal demand for imports.
The rouble has had a period of turbulence since Russia invaded Ukraine in February 2022, dropping to a record low of 150 to the dollar two weeks after the start of the war before sharply recovering after the Russian central bank imposed strict capital controls that limited the flow of money out of the country.
By last summer the rouble had rebounded to a seven-year high as a rise in oil and gas prices, partly a result of the invasion, helped Russia raise export revenue while consumer imports fell.
A senior Kremlin aide admitted on Monday that a weak rouble had a “negative effect” on the “population’s real incomes” but said Moscow expected the currency to bounce back shortly.
“The current exchange rate has deviated significantly from fundamental levels, and its normalisation is expected in the near future,” Vladimir Putin’s economic adviser Maxim Oreshkin said in an op-ed for the Tass news agency. :::

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