The Russian economy is suffering due to the war in Ukraine and sanctions.
The ruble has hit its lowest in 1.5 years. As of November 26, the Russian currency fell to 105 rubles per dollar, which was last seen in March 2022.
This is reported by Reuters.
The ruble reached 14.5 against the Chinese yuan for the first time since March 2022. While the Russian currency recorded a 0.8% decline to 104.85 per dollar.
In addition, during the trading session, the ruble reached 105.79 per dollar and 111.07 per euro.
Russian Finance Minister Anton Siluanov also commented on the situation on the currency market. He said that the Russian ruble benefits exporting companies, offsetting the negative impact of the high base interest rate of the Central Bank.
According to Russian media, local importing companies are preparing for further weakening of the currency. Some of them are already factoring in the dollar at 120-125 rubles in their internal settlements, and the level of 110-120 rubles/dollar may be reached in the next six months.
The devaluation of the ruble will hit the earnings of labor migrants, among whom there are many Turkmen, Uzbeks, Armenians, and Belarusians. retail, catering, cleaning.
Recall that the Russian currency began to devalue sharply after November 21, when the United States announced new sanctions against the Russian financial sector.
In addition, Russian economist Igor Lipsits believes that by 2026 Russia's reserves will run out, and then the authorities will be forced to take funds from the population.