Vladimir Putin’s luck may be running out now that the ruble plunged below one cent, the lowest level against the U.S. dollar since the early days of his war in Ukraine.
Vladimir Putin’s luck may be running out now that the ruble plunged below one cent, the lowest level against the U.S. dollar since the early days of his war in Ukraine.
Paywalled article.
A few years ago 1 Ruble = 0.015 USD this was pretty consistent for a while. Now 1 Ruble = 0.010 USD this has fluctuated pretty wildly.
The fluctuation is far more important than the actual number. Nobody cares if 1 Ruble = $1 or $1000 as long as you can rely on it to be that next week and next year. But the fact that you have no idea how far down (or up) it will go means that people aren’t going to want to rely on holding any currency in Russia.
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You will believe in the ruble by force! lol
Their interest rate is already at 8.5%, and their talking about raising it to 15%-20%. That paired with a a labor shortage. Not only that, they halted sales of corporate shares and government bonds by foreign investors last year. This is nuts. Why would anyone want to do business with or in Russia? Russia is literally a buddy economy. If you’re buddies with the dictator, you’re good. If not, you’re fucked. An economy like that will never succeed in the long-run because it’s based on social relationships and not actual production. It’s like wtf.
No one wants to hold Rubles when the entire Western world is deploying extreme sanctions against Russia, especially when the West created, dominates, and manipulates the global financial system.