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

Pak Army Chief Targets India Again

This is not the first time that Munir has indulged in loose talk, exhibiting conduct unbecoming an officer….reports Asian Lite News Pakistan’s Chief of Army Staff (COAS) General Syed Asim Munir on

Relief for Students: US Visa Cancellations Paused

More than 1,500 student visas have been cancelled so far…reports Asian Lite News The United States on Friday abruptly paused the cancellation of student visas issued to international students, according to reports.

Yunus Must Be Treated Like Hasina, Warn Islamists

Islamist group made these warnings to the interim government, terming the women’s reform body proposals as “anti-Islamic…reports Asian Lite News The radical Islamist group in Bangladesh, Hefazat-e-Islam, has issued a threat, stating

UN: Bring Pahalgam Terrorists to Justice

The members of the Security Council “stressed that those responsible for these killings should be held accountable..reports Asian Lite News The Security Council has “condemned in the strongest terms” the Pahalgam terrorist
Go toTop

Don't Miss

NATO summit to address escalating North Korea-Russia military ties 

The Secretary-General also said that he expects more immediate military

Russian minister highlights UAE as largest energy partner in MENA

Mikhail Ivanov pointed out that ADIPEC 2024 is being held