Putin can still afford to go to war. The Russian economy, isolated by the West, has opened up to China.
According to data from the Moscow Stock Exchange, published on October 24, the dollar fell by 49 kopecks to less than 94 rubles. This is the lowest exchange rate of the US currency against the Russian currency in six weeks. The surprising strengthening of the ruble is caused by Putin’s decision. The presidential decree obliged a significant part of exporters to sell their profits in foreign currency on the Russian market. The ruble is also supported by the rise in oil prices due to the unstable situation in the Middle East.
Real wages rose by 7.1% in the first half of 2023. The budget deficit did not increase in the second and third quarters. According to forecasts, the Russian economy could return to pre-invasion levels by the end of 2024. As you can see, the policy of sanctions and isolation of the aggressive power has not brought the expected results. This is admitted by the well-known Russian economist Vladislav Inozemtsev, who is against the Kremlin and is clearly pro-Western in his views.
“The West did not kill the Russian economy, but in a sense gave it to China.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
