The Russian currency experienced a devastating day. Within hours it lost 7% in value, an almost record loss for a single day and fell to the newest low since 2022.
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@tendar.bsky.social
May it forever head south it just teach the Muscovites and others it is expensive to wage war on another sovereign state that makes you army look like a third rate mob of murders.
The best part: Russia’s central bank likely spent billions in foreign reserves trying to stabilise the ruble but failed, forcing a trading suspension. The wasted reserves are now unavailable to fund their war machine. 🎉
The Central Bank started printing money and loaning it to state banks to buy bonds to fund the deficit, the crash started then on November 25th. They thought by printing money and putting it in bonds nobody would notice they were printing money I guess, wrong.
If Moscow can't stop it, this may degrade exponentially.
Days, if people start running the banks (but I'm pretty sure Moscow already limited the possibility to withdraw large sums)
There was a news article some months ago: The Ruble is no longer traded internationally and Russians wanting to convert their money to US dollars were being charged up to $300.
It only would affects exports to the west of which there aren’t many. Day to day this means nothing for the average Russian and its naive to think it’ll be otherwise.
Long-term Russia is effed, that’s true, but it has been true since the Second World War.
It affects Russians whenever they want to import something and it’s not only against the dollar and Euro they are loosing against the yuan to. It affects any Russian that want to go on holiday and their money now is worth 10% less than yesterday. It’s definitely not only about export.
A less valued ruble= less imports = less weapons and components etc.
A weak currency won’t end the war but it will make it harder for the Russian government to continue fighting and it will decrease morale of the population about why they are fighting.
I was getting my popcorn ready but apparently they stopped the exchange of rubble...
I know this economically far from ideal but given the russian situation and my ignorance in macro economy. I don't understand how consequential that is.
over the next 5-10 years the dollar will lose a lot relative to the ruble. usa has almost nothing to sell. we will not be able to continue to export dollars and get goods because the world can easily trade without dollars and is beginning to do it a lot.
The fact their central bank halted currency trading to stop the decline says everything, it probably won't end well because when trading opens again panic will set in. They claim it's no big deal because they don't trade much in dollars but their currency is falling against everything.
There are many ways, as a non expert all of them look very bad to me.
This is not just inflation, this is a Stagflation with no availability of a workforce. Under war conditions, too.
#RussiaIsATerroristState committing a full-scale genocide in plain sight.
It is our duty towards Humanity to help 🇺🇦 win the war.
Whatever victory takes, right now 🔥
#SlavaUkraïni
🇱🇹🇩🇰🇵🇱🇫🇷🇩🇪🇮🇹🇪🇺🇬🇧🇳🇴✊🇺🇦
Good question, as it may be deliberate (increase Rouble oil revenues to help the Kremlin fund its deficit) or because the Central Bank is running short on foreign reserves to keep Rouble demand artificially high in a cooling economy. Given the murkiness of Russian stats we may never know.
Comments
nothing gets us around this
May it forever head south it just teach the Muscovites and others it is expensive to wage war on another sovereign state that makes you army look like a third rate mob of murders.
Days, if people start running the banks (but I'm pretty sure Moscow already limited the possibility to withdraw large sums)
Long-term Russia is effed, that’s true, but it has been true since the Second World War.
A couple of days ago EastFruit analysts reported that vegetable and fruit exporters are refusing contracts to supply their products to Russia amid growing currency risks. https://east-fruit.com/en/news/urgent-todays-crush-of-the-russian-ruble-causes-panic-in-produce-trade/
A weak currency won’t end the war but it will make it harder for the Russian government to continue fighting and it will decrease morale of the population about why they are fighting.
A war is won by several factors economy one
Gotcha.
I know this economically far from ideal but given the russian situation and my ignorance in macro economy. I don't understand how consequential that is.
So much cope.
Are Trump loving Russian oligarchs ditching the Ruble in favor of crypto?
This is not just inflation, this is a Stagflation with no availability of a workforce. Under war conditions, too.
Trump seems pretty sweet on Russia. Will these sanctions will survive under his administration?
https://www.politico.eu/article/ruble-value-falls-russia-war-economy-ukraine-oil-prices-sanctions-inflation-interest-rates-oligarchs/
#RussiaIsATerroristState committing a full-scale genocide in plain sight.
It is our duty towards Humanity to help 🇺🇦 win the war.
Whatever victory takes, right now 🔥
#SlavaUkraïni
🇱🇹🇩🇰🇵🇱🇫🇷🇩🇪🇮🇹🇪🇺🇬🇧🇳🇴✊🇺🇦