Ruble Hits 16-Month Low Against Dollar: Factors Behind Russia’s Currency Slide

The Russian ruble’s exchange rate against the U.S. dollar has recently hit its lowest point in 16 months, falling below RUB100 per dollar.

Economists point to Western-imposed price caps on Russian oil as the primary cause for the ruble’s decline. The effectiveness of these price caps has impacted Russia’s oil-based economy. The ruble’s drop signifies a depreciation of over 8% in the past month and more than 20% since the beginning of 2023. While it performed well in 2022, some attribute the current decline to the curbed benefits from rising oil prices due to the price cap.

Additionally, the sanctions imposed by Western nations, the loss of key revenue sources like German trade, and Russia’s exclusion from SWIFT are contributing factors. Russ Mould, an investment director, suggests that China’s reluctance to accept rubles and the U.S. dollar’s appreciation may also be influencing the ruble’s slide.

Clever Robot News Desk 17^th August 2023