By our economics editors
Aug 15, 2023 at 10:18 AM Update: an hour ago
The ruble has been falling in value for months and the central bank in Russia is now trying to put an end to this with a strong interest rate intervention. That seems to work for a while immediately after the decision.
The Russian currency fell to its lowest level since the Russian invasion of Ukraine on Monday. This is due to the uncertain outlook for the Russian economy, which is hit by international sanctions.
Maksim Oreshkin, economic adviser to President Putin, attributes the fall of the ruble mainly to the wait-and-see policy of the Russian central bank. Emergency consultations were then immediately initiated at the central bank, resulting in an interest rate increase from 8.5 percent to 12 percent.
The central bank also raised interest rates in July, but that proved ineffective. Now there seems to be more effect for the time being. The price rose today shortly after the rate hike from 108 rubles to the euro to 106 rubles to the euro.
Shortly after the invasion of Ukraine, the ruble even dropped to a value of 146 rubles for one euro, but then the currency managed to recover. This was partly due to intervention by the central bank, but also because Western countries continued to eagerly buy oil and gas. Stricter trade boycotts have now been announced for this.
Image: AP
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2023-08-15 13:48:16
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