The Russian Ruble dropped to an all-time low on Monday, being its lowest level in over sixteen months, as sanctions imposed following the invasion of Ukraine bite harder on the country’s economy.
According to data obtained from the Moscow Exchange, the Ruble traded at 100.02 to the dollar, but recovered slightly after reaching its lowest level since March 23, 2022, earlier in the day.
Also, the ruble traded against the euro at 109.15, after it earlier dropped to a near 17-month low.
Since the invasion of Ukraine and the attendant sanctions imposed by the western allies, Russia has been grappling with a drop in export revenues, as well as rising imports and higher military spending.
Reacting to the negative development, the Russian Central Bank said it would meet today to discuss its key rate, as the ruble shed around 30 percent of its value against the dollar.
The apex bank said it would consider the key rate, which was recently hiked to a whopping 8.5 percent in July.
News of the central bank meeting came after Kremlin aide Maxim Oreshkin criticised what he called “loose monetary policy” in an opinion piece published by the state-run TASS news agency Monday.
He said the central bank had all the “necessary tools” to address the situation and predicted the ruble exchange rate would return to normal in the near future.
The decline in the ruble has prompted fears ordinary Russians’ standard of living could take a hit, as inflation creeps up.
Coupled with a year and a half of unprecedented Western sanctions, which has prompted many foreign companies to leave the country, some Russians are already starting to feel the pinch.
Currently, there are fears that the Ruble could sink further to 115-120 per dollar. Read more.
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