The Central Bank of Russia reported that energy supply disruptions from the Strait of Hormuz blockade strengthened the ruble and lowered inflation in spring. According to a summary of key rate discussions, higher global energy prices helped Russian exporters increase sales revenue.
The regulator stated that foreign currency inflows from oil, gas, and other exports expanded domestic currency supplies. An expanded tax base further supported the ruble, contributing to restrained consumer price growth during the spring months.
Factors behind summer ruble weakening
Dynamics shifted during the summer as the Russian currency began to weaken. Experts attributed the decline to higher domestic dollar demand, Ministry of Finance foreign exchange interventions, and risks of tighter American sanctions against Russian trade partners.
Economist Guzel Protsenko forecasted that the dollar exchange rate could rise to 82 rubles by the end of summer.
