Crisis in Moscow, fall of the ruble against the dollar and the euro. The Central Bank of Russia (BCR) announced an emergency meeting on Tuesday, August 15th, to support the Moscow currency, which is at a 17-month low below the psychological threshold of 100 rubles to 1 dollar. Economists expect the central bank to raise its rate by 150 basis points to 10%, extending the start of the July tightening cycle.
The ruble has fallen 27% against the dollar since the start of the year due to the economic slowdown, imbalanced currency flows and capital flight from foreign companies. The development of new supply chains since the onset of Western sanctions has boosted imports into Russia and kept constant selling pressure on the Moscow currency, with the latest trade surplus down 75% year-on-year and 53% compared to pre-war levels. Meanwhile, the outlook for exports has deteriorated amid falling demand from major partners China and India.
Source: IL Tempo
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
