The rouble hit a 17-month low against the dollar on August 14, highlighting the growing squeeze on Russia’s economy from Western sanctions and a slump in export revenues. However, for the sanctions to work, Russia would have to cave, and they’re not.
The Russian currency had lost nearly 40% of its value this year, weakening past 100 roubles to the dollar, as Moscow’s war in Ukraine takes a heavy toll. However, it has since strengthened.
The Russian rouble strengthened to 93 versus the US dollar and to 101 against the euro on Thursday for the first time since August 1 after the central bank raised the key interest rate to 12%.
Russians are mostly trading in yuan instead of the dollar and the euro since the sanctions came into effect.
This is what you can buy for $1 or 100 Rubles before the interest rate increase – watch:
It is important to note that with US inflation, higher interest rates, taxes and fees, and other factors, New Yorkers can’t get bread and milk for a dollar.
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Notwithstanding recent fluctuations in the ruble the Russian public is far more resilient than the US or Europeans. They know that Putin;’s policies rescued them from the terrible depression that occurred after the collapse of the USSR and a little privation is very survivable. They look forward to gaining control of the riches of Ukraine in a very few months and the complete humbling of the US and the West. Moreover, their dissidents have fled and now are living on US and European welfare.
Notwithstanding the variations in the ruble (or rouble), which is affected not only by the economic sanctions (not so much now) and trade deals (the EU has largely been replaced by Asian & African countries, with EU being the bigger loser), but also by Russian central bank maneuvers, the important point is that real wages in Russia have been rising over the last few years. Otoh, real wages in U.S. have been collapsing over the last few (15+?) years. Items such as bread, milk, & butter are 3x to 4x the prices in Russia in that video, with the Barilla pasta being about 2x the Russian prices.(comparing Iowa prices).
rouble????—ruble
Misleading. Look at a 10 year chart. Well above average now. The observation is being based on a SPIKE in March, 2022…it’s been climbing steadily since the bottoming out of June ’22…