March 9, 2022
1 min read

Russian Ruble in freefall

The Russian currency has depreciated significantly since 2008 and Western sanctions imposed in response to the invasion of Ukraine have pushed it into a freefall….reports Asian Lite News

Russia has banned its citizens from buying US dollars, completing the isolation of an economy that once had ambitions to join the global club of financial powers, CNN reported.

As recently as the 2008 global financial crisis, Russian President Vladimir Putin and his lieutenants had promoted the ruble as a potential alternative to the US dollar, arguing that it should be an integral part of the global financial system. Russia would become one of the world’s five biggest economies, they had claimed.

Putin’s quest to dominate his neighbours, starting with his assault on Georgia in 2008, and continuing with the annexation of Crimea in 2014 and last month’s invasion of Ukraine, has shredded what remained of the authoritarian leader’s economic dreams, CNN reported.

In early 2008, one US dollar would buy roughly 25 rubles. The Russian currency has depreciated significantly since then, and Western sanctions imposed in response to the invasion of Ukraine have pushed it into a freefall.

On Wednesday, one US dollar could buy 117 rubles in Moscow after the currency fell 10 per cent and hit a new record low. The ruble has been even weaker in the offshore market this week, the report said.

The latest slide came after Russia’s central bank banned Russians from buying hard currencies and ordered banks to cap withdrawals from foreign currency accounts at $10,000 for the next six months, moves that could help preserve some of the country’s dollar reserves and support the ruble.

Sergey Aleksashenko, a former Russian finance ministry and central bank official, described the strategy as “incredible foolishness” that could lead to a run on the banks, CNN reported.

ALSO READ: ISIS hails Ukraine war, calls ‘divine punishment’ for West

Previous Story

India, Bangladesh, Nepal finalise MoU to boost trade and connectivity

Next Story

5th Colombo Security Conclave cites shared security challenges

Latest from -Top News

AU Backs New UN Libya Roadmap

The Roadmap seeks to resolve the Libyan crisis through a political process centred on institutional unification…reports Asian Lite News The Chairperson of the African Union Commission (AUC), H.E. Mahmoud Ali Youssouf, has

Sudan Feels Impact of GERD

The GERD project remains a point of contention among Nile Basin countries….reports Asian Lite News Water levels in Sudan’s Blue Nile have fallen to record lows following Ethiopia’s announcement that it has

UNESCO sounds alarm on teacher gap

Amina Mohammed proposed a five-point plan to strengthen the profession through greater investment, gender equality, support for digital learning…reports Asian Lite News At the UNESCO World Summit on Teachers in Santiago, Chile,

Modi Ends China Trip, US Hails India Ties

US termed India-US ties as a “defining relationship of the 21st century”, stating that partnership between both countries continues to reach new heights….reports Asian Lite News Shortly after videos and images of
Go toTop

Don't Miss

Russia promises early discharge of all Indians from army service

The Foreign Secretary also spoke about the highest national honour

Britain mocks Russia over its new foreign policy

Russia’s new foreign policy was adopted by Russian President Vladimir